Prices of gold futures fell, extending the biggest weekly loss since April as traders continued to reflect the time of a rate hike by the Fed, helped push the dollar to a maximum of one month.
On the Comex, gold futures for August delivery decline by $1.00, or 0.08%, to trade at $1,205.90 a troy ounce, Bullion for immediate delivery lost as much as 0.3 percent to $1,202.95 an ounce and traded at $1,203.92 in London.
Dollar Spot Index an indicator of the strength of the greenback against 10 major counterparts, rose to 0.2 percent, the highest since April 27. The measure rose 2.6 percent last week, the highest since September 2011.
The dollar has strengthened after the Fed chairman said Janet Yellen on Friday that interest rates will rise by year end. After that, future rate increases will be small and gradual in coming years, said Yellen.
The dollar was also boosted on Friday following inflation data in the United States stronger than expected supported the case for a rate hike later this year.
The rupee closed at 63.57, down 0.07% from its previous close, after dollar strengthens abroad. The BSE Sensex fell 1.12% or 313.62 points, to close at 27,643.88 points.
Gold prices in the international market have increased. At MCX gold with a gain of 0.2 percent is trading at Rs 27,130.
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