Gold has worst week since November as safe-haven demand eases

New York (March 19) - Gold was on track for its biggest weekly drop in nearly four months on Friday, after demand for the safe-haven metal was hit by hopes of progress in peace talks between Russia and Ukraine as well as the fallout from a U.S. interest rate hike.

Spot gold was down 0.7% to $1,929.56 per ounce, as of 2:01 p.m. EDT (1801 GMT), weighed down by a stronger dollar.

U.S. gold futures settled down 0.7% to $1,929.30.

The dollar jumped against its rivals, making bullion more expensive for overseas buyers.

"We have seen the invasion-driven momentum and speculative fury (for gold) massively cool off over the past 10 days," said David Jones, chief market strategist at Capital.com.

Bullion is down 2.8% this week as optimism over the peace talks lifted sentiment in wider financial markets, denting demand for safe-haven assets.

REUTERS