* Gold on track for biggest weekly decline in nine
* Market monitoring Fed Chair comments due later in the day
* Platinum, silver prices reach multi-week lows
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
(Updates throughout, changes dateline, pvs BENGALURU)
By Jan Harvey
LONDON, May 27 (Reuters) - Gold steadied off an eight-week
low on Friday, but remained on track for a fourth straight
weekly drop as growing speculation that the Federal Reserve will
press ahead with interest rate hikes hurt investor demand.
The metal fell for seven straight sessions to Thursday, its
longest run of losses in more than six months, after minutes of
the Fed's latest policy meeting indicated last week that a rate
hike may be on the cards sooner rather than later.
That view has been consistently supported by central bank
officials this week. An increase in U.S. rates would raise the
opportunity cost of holding gold, while boosting the dollar, in
which it is priced.
Spot gold XAU= was at $1,219.64 an ounce at 0930 GMT,
little changed from late on Thursday but off an earlier low of
$1,211.30. U.S. gold futures GCv1 for June delivery were down
60 cents an ounce at $1,219.90.
The metal remains up 15 percent this year after a sharp
first-quarter rally, but has fallen 4.5 percent since the Fed
minutes were released last week.
"Expectations for summer rate hikes from the Fed have
changed over the past couple of weeks, and looking at that,
combined with the dollar being off its lows, equities near the
highs, and yields higher, it's a warranted move in gold," UBS
analyst Joni Teves said.
"That's especially as you're coming from quite a big
build-up in positioning. Last week's CFTC data showed that net
longs were around 98 percent of the record high."
Fed Governor Jerome Powell, a voting member of the U.S.
central bank's rate-setting committee, said on Thursday he felt
the economy was on a "solid footing" and within reach of the
Fed's inflation goals.
The Atlanta Fed on Thursday predicted the economy is on
track to grow by a 2.9 percent annualized rate in the second
quarter.
The gold market is awaiting further direction from comments
from Fed Chair Janet Yellen later on Friday.
"If she (Yellen) nudges expectations towards a rate
increase, the futures fund curve should start to show a higher
probability of an imminent move," INTL FCStone said in a note.
Silver XAG= touched its lowest in nearly six weeks at
$16.12, and was later flat at $16.30 an ounce.
Platinum XPT= was up 0.5 percent at $993 after touching
its weakest in over a month at $981, and was on track for its
biggest weekly decline since Jan. 15. Palladium XPD= was 0.5
percent higher at $543.90.
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