Since the surging dollar is cutting demand
for the precious metal, gold is nearing a three-month lows after posting eight straight declines.
A ninth drop on Thursday would be the longest losing run since 1998, says Bloomberg.
In Singapore, bullion for immediate delivery lost as much as 0.4 percent
to $1,150.32 an ounce and was at $1,153.10 by 12:38 p.m.
Prices declined to $1,147.72 on Wednesday, the lowest level since Dec. 1 as the U.S. currency climbed, and another daily fall would complete the longest run of losses since January 1998.
The Bloomberg Dollar Spot Index is headed for the biggest quarterly advance since 2008 amid speculation that the Federal Reserve is getting closer to raising rates as the largest economy recovers. The currency’s rise to a decade-high this week followed a report on Friday that showed U.S. employers added more workers than expected last month.
Policy makers are better off tightening earlier and more gradually than later and more quickly, Fed Bank of Dallas President Richard Fisher said on Monday. The Federal Open Market Committee is scheduled to meet next week.
In opinion of Artur Passos, who makes metal outlooks at Itau Unibanco - Latin America's biggest bank by market value - bullion will post its third annual drop this year, with the U.S. central bank indicating it will raise rates for the first time since 2006.
Passos was the most-accurate among 20 forecasters, data compiled by Bloomberg Rankings show.
An improving U.S. economy erodes the appeal of gold as a
haven and sends investors to assets with better yield prospects
such as bonds and equities. February marked the 12th month U.S.
payrolls have increased by at least 200,000, the best run since
a 19-month stretch that ended in March 1995.
According to James Steel, an analyst at HSBC Securities (USA) Inc. in New York, further declines may encourage price-sensitive emerging market buyers to step in, while significant physical demand is yet to materialize.
Spot gold’s 14-day relative strength index held below the level of 30 on Thursday for a fifth day, indicating to some investors who study charts that prices may be poised to rebound.
Bullion for April delivery was at $1,151.60 on the Comex from $1,150.60 on Wednesday, when futures fell to a three-month low. The most-active contract is 2.8 percent lower in 2015, after a 1.5 percent loss last year and 28 percent slump in 2013.
Silver for immediate delivery fell 0.2 percent to $15.4752 an ounce after dropping on Wednesday to $15.2977, the lowest since Dec. 1. The metal is headed for a ninth daily loss, the longest run since 2008.
Spot platinum retreated 0.1 percent to $1,118.75 an ounce after reaching $1,114.05 on Wednesday, the lowest since 2009. Palladium increased 0.2 percent to $790.70 an ounce.
