BENGALURU — Gold prices edged lower on Tuesday after two sessions of gains, with the US dollar strengthening amid speculation the Federal Reserve will raise US interest rates in December. Spot gold had dropped 0.1% to $1,258.01/oz by 3.36am GMT. US gold futures were steady at $1,260.10/oz. Bullion had risen for two consecutive sessions after touching a four-month low of $1,241.20 on Friday. Spot gold ended last week about 4.5% lower, its biggest weekly decline since November 2015. "After the drastic drop, the optimistic mood in gold markets has reduced," said Jiang Shu, chief analyst at Shandong Gold Group. "Gold prices will be in further decline due to a rise in the US dollar." The dollar index, which measures the greenback against a basket of six major currencies, was up 0.2% at 97.109. The metal is highly sensitive to US interest rates, increases in which lift the opportunity cost of holding nonyielding gold while boosting the dollar, in which it is priced. Traders have priced in...
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