Gold hits 3-week low as dollar firms

BENGALURU (Reuters) - Gold prices hit a three-week low on Friday and were on track for a second weekly fall, dragged down as upbeat U.S. economic data supported the dollar. The dollar index firmed after data showed the number of Americans filing for unemployment benefits fell more than expected last week. Robust economic data could encourage the U.S. Federal Reserve to raise interest rates again this year following a hike this week. "The strengthening of the dollar (is weighing on gold)... and after the latest Fed interest rate hike people are waiting to see when the Fed will raise rates next," said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore. Higher interest rates tend to boost the dollar, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion. Spot gold remained unchanged at $1,253.50 per ounce, as of 0758 GMT. Earlier in the session, it hit $1,251.05, its weakest since May 24. The metal has fallen about 1 percent so far this week. Astrology and Numerology Trading Tips