AKIPRESS.COM - Gold traded near the lowest in three weeks as Federal Reserve policy makers signaled a rise in interest rates by next year while further reducing monetary stimulus, boosting the dollar and curbing demand for the metal, Bloomberg reported.

Bullion for immediate delivery lost as much as 0.3% to $1,325.66 an ounce, the lowest since February 28, and was at $1,331.74 in Singapore. Gold is down 3.7% this week, heading for the first such loss since the period ended January 31 and the biggest drop since September.

The Federal Reserve released new forecasts showing more officials predicting the benchmark rate, now close to zero, would rise at least to 1% at the end of 2015 and 2.25% by the end of the following year, higher than previously forecast. The central bank also announced a $10 billion reduction in monthly bond buying to $55 billion.

Gold advanced 10% this year as signs of slowing global growth and the crisis in Ukraine increased demand for a haven. Ukraine said it plans to reinforce its eastern border with Russia and withdraw troops from Crimea, as the U.S. and European Union struggle to respond to the annexation of the Black Sea peninsula.

Gold for April delivery fell 0.7% to $1,332 an ounce on the Comex in New York. Assets in the SPDR Gold Trust, the largest bullion-backed exchange-traded product, were unchanged for a second day yesterday after falling 0.5% on March 17.

In China, the largest consumer, volumes for the benchmark spot contract in Shanghai rose to a three-week high yesterday as metal of 99.99% purity for immediate delivery traded $3.95 an ounce below the London price.

Silver for immediate delivery added 0.4% to $20.6921 an ounce, snapping three days of losses. Platinum rose 0.2% to $1,450 an ounce, reversing a drop of as much as 0.3% to $1,443.13 an ounce, the lowest since March 4. Palladium was little changed at $764.05 an ounce.