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Tuesday, April 7, 2015

Gold retreats from 7-week top as dollar firms

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Gold steadied below a seven-week high on Tuesday as the dollar regained momentum, although uncertainty about the timing of a US interest rate hike kept bullion above $1,200 an ounce.

Friday’s bleak US non-farm payrolls data fuelled expectations that the Federal Reserve could delay an anticipated rate increase this year, boosting gold’s safe-haven appeal. US jobs posted the slowest growth in more than a year in March.

Spot gold was nearly flat at $1,213.80 an ounce at 0243 GMT, after hitting a session high of $1,224.10 on Monday, its loftiest since Feb. 17.

US gold for June delivery slipped 0.4 percent to $1,214.20 an ounce.

Thianpiriya said he still expects gold to drop to $1,100 by end-June, under pressure from a firmer dollar. A stronger greenback makes dollar-denominated assets such as gold more expensive for holders of other currencies.

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