* Gold on track for biggest weekly decline in nine
* Market monitoring Fed Chair comments due later in the day
* Platinum touches lowest in over a month
(Updates prices)
By Koustav Samanta
BENGALURU, May 27 (Reuters) - Gold slipped to its lowest in
eight weeks on Friday, and was on track for its biggest weekly
decline in nine, as expectations of a U.S. interest rate hike in
two months on positive economic data hurt investor appetite.
The safe-haven asset was also weighed down by Asian stocks
that drifted upwards on Friday and as the dollar index .DXY ,
which measures the greenback against a basket of six major
currencies, held steady. MKTS/GLOB USD/
Spot gold XAU= was up 0.1 percent at $1,221.45 an ounce by
0624 GMT, after falling as low as $1,211.30 earlier in the
session, the lowest since April 1. The metal has dropped about
2.5 percent so far this week, heading towards its biggest weekly
decline since March 25.
U.S. gold GCcv1 was nearly flat at $1,221.
Bullion has been under pressure since the prospect of an
imminent rate hike was indicated by U.S. Federal Reserve meeting
minutes released last week and has been consistently supported
by key central bank officials. An increase in rates would raise
the opportunity cost of holding gold.
"Gold is not an interest-bearing asset so that is the reason
a majority (traders) might want to wait on the sidelines, or,
even move out of gold at the moment," said Brian Lan, managing
director at Singapore-based gold dealer GoldSilver Central.
"Some traders might just exit the market for now and see
where it goes before they come back in."
Fed Governor Jerome Powell, a voting member of the U.S.
central bank's rate-setting committee, on Thursday said he felt
the economy was on a "solid footing" and within reach of the
Fed's inflation goals.
Meanwhile, the Atlanta Fed on Thursday predicted the
country's economy is on track to grow by a 2.9 percent
annualized rate in the second quarter, following the latest data
on durable goods orders and advance goods trade.
The gold market is awaiting further direction from Fed Chair
Janet Yellen's comments at a panel event hosted by Harvard
University 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," said INTL FCStone analyst
Edward Meir.
"At this point, the dollar could start to stabilize and
perhaps weaken given that a rate hike would now be mostly
discounted."
Among other precious metals, spot silver XAG= touched its
lowest since April 18, hitting a low of $16.12. Spot platinum
XPT= marked its weakest in over a month and was on track for
its biggest weekly decline since Jan 15.