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Gold falls after stocks resume gains and US inflation rises
[SINGAPORE] Gold fell as Asian equities resumed gains and the chances of a US rate hike rose after a report on Friday showed a pick up in inflation.
Bullion for immediate delivery slid as much as 0.3 per cent to US$1,223.67 an ounce, and traded at US$1,224.07 at 9:22 am in Singapore, according to Bloomberg generic pricing.
The metal retreated 0.9 per cent last week as the MSCI Asia Pacific Index jumped 5.9 per cent, the most since December 2011. The stocks index added another 0.6 per cent on Monday.
After three annual losses, gold has risen 15 per cent this year on signs of weakness in the global economy and sliding commodity prices.
The US Labor Department's report showed the cost of living in the US excluding food and fuel increased in January by the most in more than four years, buoying expectations that economic conditions could stand a second rate increase in this cycle, which is negative for assets like gold that don't pay interest.