Prices for gold fell on Friday, snapping a week-long streak of gains, as a result of conflicting signals from U.S. Federal Reserve officials on the timing of a possible rate hike, although prices were still on track to end the week higher.
Spot gold fell as much as 1.5% to a session low of $1,337.37 U.S. per ounce, paring losses to trade down 0.6% at $1,344.41. The yellow metal was still heading for a weekly gain of around 0.7%.
U.S. gold dropped 0.6% to $1,348.50 U.S. an ounce.
Gold is susceptible to higher rates which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.
Fed policymakers have furnished the market with mixed signals this week, leaving the market anticipating more direction at next week's annual meeting of central bankers from around the world in Jackson Hole, Wyoming. At this meeting, Fed Chair Janet Yellen is seen likely to confirm expectations for a slow pace of rate increases.
At the same time, spot silver was down 1.9% at $19.36 U.S. an ounce, while platinum inched lower at $1,115.20 U.S.
Palladium was down 0.5% at $709.70 U.S., after hitting an one-week high of $717.70 on Thursday.
