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Gold Posts Longest Slump in Six Months on Fed Rate Signals

  • Dollar strengthens as traders raise bets on U.S. rate increase
  • ETF holdings still rising, at highest since November 2013
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Gold Prices Are Still Solid

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Gold had a fifth straight decline, the longest slump since November, as speculation that the Federal Reserve will raise interest rates as early as next month strengthened the dollar, denting demand for the metal as an alternative asset. A gauge of mining shares fell to a five-week low.

A dollar index rose to the highest since March as two more Fed officials signaled prospects for tighter monetary policy. Higher rates curb the appeal of non-interest-bearing assets like gold. Swiss customs data showed exports of bullion to India and China, the largest buyers, fell in April from a year earlier.