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Gold Drifting Lower During Market Collapse

Gold futures inched lower Friday, barely budging despite massive volatility on Wall Street. Stocks continued to collapse, with the Dow Jones Industrial Average down more than 10% from January's record highs.

April gold fell $3.30, or 0.3%, to settle at $1,315.70/oz, the lowest since September. Gold was down only 1.6% this week, outperforming most assets.

The DJIA has plunged more than 400 in afternoon trading.

Gold's safe haven appeal has been offset by its sensitivity to higher interest rates.

Yet another Federal Reserve official said today that the central bank is not spooked by stock market fluctuations.

It remains "important" that the Fed continue "on its current path of policy normalization, with gradual increases in the target federal-funds rate," KC Fed President Esther George said during a speech in Wichita, Kan.

She says the Fed still expects three rate hikes this year: "This is a reasonable baseline unless the outlook changes materially."

Her remarks echo those of numerous Fed officials earlier in the week. In light of Friday's strong U.S. jobs report, some analysts expect the Fed to offer as many as four modest rate hikes this year, starting in March.

by RTTNews Staff Writer

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