Gold falls on dollar after 7-day rally; set for 2nd weekly gain

27-Mar (Reuters) – Gold fell on Friday, snapping a seven-day rally as the dollar rebounded after Federal Reserve officials signalled they remained on track to raise rates this year, but the metal still looked set to post its second straight weekly gain.

…Saudi Arabia and its allies launched air strikes in Yemen on Wednesday, rattling wider markets and supporting gold, usually seen as an insurance against risk.

…Despite Friday’s losses, gold was on track to finish the week up around 1.5 percent after its seven-day rally, the metal’s longest winning stretch since August 2012.

Gold had gained strength after the Fed sounded cautious at its policy meeting last week about the pace of an interest rate increase, prompting the dollar to fall from multi-year highs.

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