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Gold Heads for Longest Slump in Four Years on Fed, Dollar

Gold fell, capping the longest slump in four years, as the dollar jumped to a 34-month high and a Federal Reserve policy maker said that U.S. monetary stimulus may be reduced within months.

The greenback rose to the highest since July 2010 against a basket of major currencies after Fed Bank of San Francisco President John Williams said yesterday that the central bank may begin to reduce monthly bond purchases as early as the third quarter. Holdings of exchange-traded products backed by gold have dropped every week since mid-February. The Standard & Poor’s 500 Index of equities rose to a record two days ago.