Gold heads for fourth weekly drop as US rate view weighs

Gold slid to an eight-week low on Friday and was heading for a fourth consecutive weekly drop as growing speculation that the Federal Reserve will press ahead with interest rate hikes hurt investor demand.

The metal fell for seven straight sessions to Thursday, its longest run of losses in more than six months, after minutes of the Fed’s latest policy meeting indicated last week that a rate rise may be on the cards sooner rather than later.

That view has been consistently supported by central bank officials this week. An increase in US rates would raise the opportunity cost of holding gold, while boosting the dollar, in which it is priced.

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