Gold weakens to two-week low

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Investors are taking a cautious view on gold amid a strong dollar as the price of the yellow metal has fallen to an two-week low.

The price of gold fell $2.51 to $1,231.74 a Troy ounce on Friday to its lowest level since February 14.

Gold fell by 1.2 per cent on Thursday to $1234.25 – its biggest fall since February 6 – as amid growing expectations the Federal Reserve will raise rates this month. This also prompted a rally in the US dollar and a sell-off in bonds.

The dollar index eased 0.2 per cent to 102.05 on Friday from Thursday’s eight-week high.

Weakness in the yellow metal comes as the price of bitcoin climbed above that of gold yesterday for the first time as the cryptocurrency hit a record intraday high of $1,292 to close at $1,257.94, according to Bloomberg. Bitcoin is currently trading at $1,267.10.

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