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Gold heads for biggest weekly drop in eight on Fed rate outlook

Gold steadied after two days of losses on Friday, but was set for its biggest weekly slide in eight weeks on the back of a firmer dollar and indications from the US Federal Reserve that it could raise interest raise rates sooner than expected. New York Fed President William Dudley said on Thursday there was a strong sense among the central bank officials that markets were underestimating the probability of policy tightening and that the Fed was on track for a rate hike in June or July.