Gold Rallies to Near $1185 after Six Week Low

Gold languished near a six-week low on Monday, unable to recover from a three-day losing streak, as the dollar gained on signs of stabilization in the U.S. economy, and fears the Federal Reserve would soon hike interest rates.

Spot gold was firm at $1,178.50 an ounce by 0042 GMT, not far from a six-week low of $1,170.20 reached on Friday.

The metal has lost about 2 percent in the past three sessions since the Fed signaled on Wednesday that it saw the recent slowdown in the U.S. economy as transitory and was not ruling out an interest rate rise this year.  A strong economy diminishes gold’s appeal as a haven, while higher rates could dent demand for non-interest-paying bullion.