Gold set for weekly fall as more US rate hikes expected

Gold prices headed for another weekly fall on Friday, holding near last session's two-month lows as prospects of more interest rate hikes by the US Federal Reserve dimmed bullion's appeal amid a slew of strong economic data, reports Reuters.

Spot gold was little changed at $1,821.99 per ounce by 1123 GMT. US gold futures rose 0.2 per cent to $1,829.70.

Bullion has lost about 7.0 per cent since the beginning of February, having posted significant declines in the previous two out of three weeks and is down about 1.0 per cent this week.

Gold is trying to find support around the $1,820 level, but prices could drift still lower towards $1,776 on strong personal consumption expenditure data, said Ole Hansen, head of commodity strategy at Saxo Bank.

"The market is looking to stabilise after the long overdue correction, which has now been unfolding for the past three weeks."

Data on Thursday showed US GDP increased at a revised 2.7 per cent annualised rate last quarter, while new claims for unemployment benefits unexpectedly fell last week.