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Gold gains as dollar rally pauses, investors boost ETF holdings

Monday, May 23, 2016 - 10:50
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Gold rebounded from the longest run of weekly losses this year after a rally in the dollar paused and investors expanded bullion holdings while debating the possible timing of a US interest rate increase.

[SINGAPORE] Gold rebounded from the longest run of weekly losses this year after a rally in the dollar paused and investors expanded bullion holdings while debating the possible timing of a US interest rate increase.

Bullion for immediate delivery gained as much as 0.3 per cent to US$1,256.24 an ounce and was at US$1,254.32 at 10:14 am in Singapore, according to Bloomberg generic pricing. The metal capped a third week of declines on Friday, the longest run since November.

Gold has pared this year's advance over the past three weeks as investors reassess their view on the likelihood of higher US rates in 2016, seeing them as more likely after Fed policy makers signaled a willingness to raise borrowing costs.

Still, bullion holdings in exchange-traded funds have continued to expand, rising about 21 metric tons last week. A gauge of the US currency fell on Monday after posting three weeks of gains.

BLOOMBERG