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Gold under pressure as Fed's Yellen backs gradual rate hikes

Gold prices edged down on Thursday on a strong dollar after Federal Reserve Chair Janet Yellen advocated lifting U.S. interest rates gradually. 

 

Spot gold was down 0.1 percent to $1,202 per ounce by 0335 GMT, after dropping to as much as $1,197.31. The bullion hit an eight-week high of $1,218.64 on Tuesday. 

 

U.S. gold futures had fallen as much as over 1 % to $1,197.10.

 

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Gold, considered a safe-haven investment during times of geopolitical and financial uncertainty, has risen more than 7 % since dropping to a more than 10-1/2-month-low in December.

 

U.S. consumer prices increased in December as households paid more for gasoline and rental accommodation, leading to the largest year-on-year increase in 2-1/2 years and signaling that inflation pressures could be building.

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