Gold heads for weekly drop on talk of US rate rise
Gold on track for biggest weekly loss in nearly four months as speculation grows that US Federal Reserve will press ahead with a rate increase this month
London — Gold fell half-a-percent on Friday and was on track for its biggest weekly loss in nearly four months as speculation grew that the US Federal Reserve would press ahead with a rate increase this month. The probability of a Fed move in March rose to nearly 80% on Friday from less than 20% two weeks ago, money markets indicated, after hawkish comments from New York Fed chief William Dudley and San Francisco Fed President John Williams. Traders will be watching for any reinforcement of that message from Fed Chair Janet Yellen and Vice Chair Stanley Fischer when they speak later on Friday. Spot gold was down 0.5% at $1,228.05 an ounce by 2.30pm GMT, while US gold futures for April delivery were down $4.50 at $1,228.40. Gold prices have retreated sharply since failing to decisively break through resistance at their 200-day moving average of $1,261 this week. "The market has responded very clearly to the more aggressive stance by FOMC (Federal Open Market Committee) members regard...
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