Gold fell for a second straight session on Wednesday, slipping further away from a 15-month high as the dollar steadied after recent sharp losses and as two Federal Reserve officials talked up US interest rate hikes this year. Spot gold had eased 0.4 percent to $1,281.10 an ounce by 0645 GMT, after dropping 0.4 percent in the previous session. US gold futures dropped 0.7 percent to $1,283.40, falling for a second straight session after a six-day rally.
Earlier this week, gold had climbed to $1,303.60, its highest since January 2015, after the dollar slumped against the yen. "The difficulty gold is experiencing in staying above $1,300 does not necessarily mean the bull rally is ending. But the rally may be tired and in need of consolidation. This can trigger profit-taking," said HSBC analyst James Steel. Gold prices have gained 21 percent since the start of the year on the outlook that the Fed has slowed its expected pace of rate increases. Bullion is sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding bullion.
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