Gold is heading for a third weekly decline

Gold prices fell on Friday, on track for a third consecutive week of declines, as investors worried about the possibility of the Federal Reserve raising interest rates after a series of strong economic data.

Spot gold fell 0.6 percent at $1,827.09 an ounce, after earlier falling to its lowest since early January. The yellow metal has fallen 2 percent so far this week. US gold futures also fell 0.9 percent to $1,835.70.

Gold is a hedge against inflation, but higher interest rates increase the opportunity cost of holding non-yielding bullion.

Several Federal Reserve officials stressed this week that monetary tightening must continue to bring inflation down to the 2 percent target.

Markets now expect interest rates to reach more than 5 percent by May and to stay at those levels throughout the year.

As for other precious metals, spot silver fell 0.7 percent to $21.45 an ounce. Platinum also fell 0.4 percent at $916.93, and palladium fell 1.3 percent to $1,491.38.