Friday witnessed an eight-week low for gold, and the shiny yellow metal was heading for a fourth consecutive weekly drop as growing speculation that the U.S. Federal Reserve would press ahead with interest rate hikes hurt investor demand.
Gold 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 a reality sooner rather than later.
That view was consistently supported by central bank officials this week. An increase in U.S. rates would raise the opportunity cost of holding gold, while boosting the dollar, in which it is priced.
Gold dipped to its lowest level since March 28, when the precious metal traded as low as $1,206 U.S. This is its eighth day of consecutive losses, for the first time since its 10-day losing streak ended July 22, 2015.
Spot gold was down 0.9% at $1,209.30 U.S. an ounce, off an earlier low of $1,211.30. U.S. gold futures for August delivery were down $8.90 to $1,213.80 U.S.
Silver touched its lowest in nearly six weeks at $16.12 U.S., and was later down 0.3% at $16.25 U.S. an ounce. Platinum was down 0.6% at $982.40 U.S. an ounce after touching its weakest in over a month at $977.40, and was on track for its biggest weekly decline since Jan. 15. Palladium was 0.6% higher at $545.60 U.S.
