Gold falls 1 pct as Yellen signals US rate hike on track

30-Mar (Reuters) – Gold dropped for a second straight session on Monday, slipping further from a three-week high, as the dollar climbed after Federal Reserve Chair Janet Yellen signaled the U.S. central bank may be on course to raise interest rates later this year.

Bullion may be set to give up recent gains fueled by the Fed’s March policy statement that it was prepared to move more slowly in hiking U.S. rates than the market expected. The metal rose for seven consecutive sessions after the Fed’s meeting this month in its longest rally since 2012.

On Friday, Yellen said an increase in the Fed’s benchmark rate “may well be warranted later this year” given sustained improvement in U.S. economic conditions.

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PG View: The data qualifier remains, but the goal seems to be to keep investors from making big bets one way or another.