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Gold holds decline as Fed policy makers flag possible April rise
[NEW YORK] Gold held a three-day decline after two Federal Reserve officials signaled that an interest rate increase could happen as soon as next month, reducing the appeal of the metal as an alternative asset.
Bullion for immediate delivery traded at US$1,245.04 an ounce by 8:16 am in Singapore, from US$1,243.75 on Monday, when it fell 0.9 per cent, according to Bloomberg generic pricing.
It's retreated 1.5 per cent in the past three days.
Gold's rally this year, which has made it the best performing major commodity, is being stymied as the dollar recovers from a near nine-month low.
On Monday, Atlanta Fed President Dennis Lockhart and San Francisco Fed chief John Williams said that recent economic data may justify additional tightening.
The Federal Open Market Committee, which raised rates in December for the first time in almost a decade, next meets on April 26-27.