Gold is heading for the longest run of weekly losses this year courtesy of the Federal Reserve, which signaled in comments from policy makers and meeting minutes that U.S. interest rates may rise as early as June.
Bullion for immediate delivery was little changed at $1,254.05 an ounce at 2:55 p.m. in Singapore, down for a third week, the longest losing streak since November, according to Bloomberg generic pricing. It sank to $1,243.90 on Thursday, the lowest since April 28, as a resurgent dollar hurt demand.
Gold’s rally in 2016, which saw prices climb to a 15-month high, has been thrown into reverse as investors reassess the likelihood of higher U.S. borrowing costs, which damp the appeal of bullion. Following the release of the April minutes that suggested increases were on the cards, New York Fed President William Dudley said on Thursday a June-July time frame for a hike was reasonable, while Richmond Fed President Jeffrey Lacker said there was a very strong case for a raise next month.
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