Gold near 10-1/2 month low, heads for sixth weekly drop

Gold edged up on Friday but remained near its weakest level in 10-1/2 months, pressured as the U.S. dollar surged to multi-year peaks after the Federal Reserve raised interest rates and projected further hikes in 2017.

Spot gold was up 0.2 % at $1,130.81 an ounce by 0249 GMT, after touching its weakest level since Feb. 2 at $1,122.35 in the previous session. Gold fell nearly 1.4 percent on Thursday, its biggest percentage decline in three weeks.The metal was down more than 2 % for the week, on track for its sixth consecutive weekly loss. 

U.S. gold futures were up 0.3 % at $1,132.90 an ounce, after dropping nearly 3 % in the prior session. 

 

"Gold prices continued to come under selling pressure as the impact of the Fed’s more hawkish view of rates in 2017 weighed on investor sentiment," ANZ said in a note. 

 

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Holdings of the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, which are down over 10 % since November, fell 0.84 % to 842.33 tonnes on Thursday.

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