* Expectations of U.S. rate hike, possibly as soon as April
* Gold fell 3 percent last week, the most since November
* Coming Up: U.S. pending home sales; 1400 GMT
(Updates prices)
By Manolo Serapio Jr
MANILA, March 28 (Reuters) - Gold dropped to its weakest in
a month on Monday, pressured by a firmer dollar following
hawkish comments from U.S. Federal Reserve officials that
signalled the next U.S. interest rate increase could come as
soon as next month.
It marked further losses for bullion which fell the most
since November last week as the dollar gained traction on
prospects of higher U.S. interest rates in the near term.
All eyes will be on Fed Chair Janet Yellen who speaks on the
U.S. economy and monetary policy on Tuesday that may give more
clues on how many rate hikes policymakers are looking at and the
timing.
St. Louis Fed President James Bullard was the latest to add
his voice to policymakers supporting a rate hike, possibly as
soon as in the next policy meeting in April.
But Bullard also said he was undecided on whether to push
for an April rate increase in part because the U.S. central bank
will have seen little more economic data in the interim.
"While we have stated that Fed tightening may not be as
negative for gold as in previous tightening cycles, an April
rate rise would likely knock gold lower near term," HSBC analyst
James Steel wrote in a report.
Steel, however, said gold's retreat may be temporary if the
Fed only lifts interest rates twice this year which "should
allow the market to hold above $1,200 support".
Spot gold XAU= was down 0.2 percent at $1,214.16 an ounce
by 0650 GMT. It touched a session-low of $1,208.15, its cheapest
since Feb. 23. The metal lost 3 percent last week.
The dollar hit a 1-1/2-week high versus a basket of
currencies .DXY , extending last week's gains as expectations
for an April U.S. rate hike strengthened.
Trading was likely to remain slow on Monday with key
markets, including London, still shut for Easter holidays.
U.S. gold for April delivery GCcv1 slipped 0.6 percent to
$1,214.50 an ounce.
Inflows into gold exchange-traded funds (ETF) continued,
however, suggesting confidence in bullion remained.
SPDR Gold Trust GLD , the world's largest gold-backed ETF,
said its holdings rose to 26.48 million ounces on Thursday, the
highest since December 2013. HLDSPDRGT=XAU
Russia and Kazakhstan extended their gold buying spree in
February by adding to their bullion reserves, while Malaysia and
Turkey cut their bullion holdings, data from the International
Monetary Fund showed on Friday.
Spot silver XAG= gained 0.3 percent to $15.19 an ounce and
palladium XPD= rose 0.7 percent to $578. Platinum XPT= edged
up 0.6 percent to $950.10 an ounce.