Gold falls on the strong dollar after US Fed’s rate hike

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Gold prices fell on Friday as the dollar strengthened after the U.S. Federal Reserve raised interest rates for the third time this year.

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The Fed raised its benchmark overnight lending rate by a quarter-percentage point to a range of 1.25% to 1.50%, as widely expected.

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In a statement, the central bank signaled that it expects to raise rates three more times in 2018.

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The dollar rallied after the rate hike announcement, with the Bloomberg Dollar Spot Index climbing to a one-week high. 

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A stronger greenback makes gold more expensive for holders of other currencies.

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Gold fell as much as 1.5% on Friday, before trimming some of its losses. 

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The metal was down 0.8% at $1,257.86 a troy ounce by 1:37 p.m. ET (17:37 GMT).

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Silver prices were also lower on Friday, with the white metal down 2% at $16.31 a troy ounce.

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Palladium was the biggest loser among precious metals, tumbling 3.2% to $1,028.50 an ounce.

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Platinum prices fell 2.3% to $923.20 an ounce after briefly climbing above $940 earlier in the session.

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Copper prices were little changed on Friday, but still on track for their biggest weekly gain in more than three months.

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