London — Gold hit a five-week low on Tuesday as the dollar rallied following hawkish comments from an influential US Federal Reserve official and dovish remarks from the Bank of England governor. New York Fed President William Dudley said on Monday that labour market tightness should help drive up inflation, reinforcing the message that recent weak data is unlikely to derail plans to keep raising interest rates. The greenback had a further lift on Tuesday following dovish comments from Bank of England Governor Mark Carney. Also on Tuesday, Boston Fed President Eric Rosengren said that the era of low interest rates in the US and elsewhere poses financial stability risks and that central bankers must factor such concerns into their decision-making. "It (another US rate hike) is not entirely unlikely. Gold from now to the end of the year could see slight drops, especially if (on top of Fed hikes) the European Central Bank starts tapering its bond buying programme," said Natixis analyst...
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