Gold capped the biggest four-day drop since November after the Federal Reserve stoked the outlook for higher interest rates, underscoring Goldman Sachs Group Inc.’s forecast that the 2014 rally would reverse.
Gold gained for the second time in three days as weaker U.S. economic growth and Russia-Ukraine tension underpin demand for haven assets. Palladium advanced to the highest since April amid supply concerns.
Gold extended its 2014 rally, climbing to a three-month high as speculation that U.S. stimulus will continue boosted the appeal of alternative assets. Silver rose in the longest run of gains since 2011.