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By Bloomberg

Gold tumbled to the lowest in three months and set for the longest run of losses in almost two years as the dollar extended gains on speculation the Federal Reserve will bring forward interest rate increases as the economy recovers.

Bullion for immediate delivery fell as much as 0.6 percent to $1,159.85 an ounce, the lowest since Dec. 1, and traded at $1,161.96 by 12:28 p.m. in Singapore, according to Bloomberg generic pricing. Gold slumped 2.6 percent on Friday after a report showed the U.S. jobless rate fell to a seven-year low. A seventh day of declines is the longest run since May 2013.

Investors are weighing data for clues on when the central bank may raise rates from near zero. The Bloomberg Dollar Spot Index is at the highest in a decade after the U.S. jobs report saw traders bolster bets on a September rate rise. Fed Bank of Dallas President Richard Fisher warned that delaying higher borrowing costs risked recession. Higher rates curb gold’s appeal as it generally gives returns only through price gains.

“We expect gold to remain suppressed and to consolidate as a lack of economic release and the stark reality of a rate hike push prices south,” Howie Lee, an investment analyst at Phillip Futures Pte, wrote in a note. Prices may be supported at $1,150 an ounce, he said.

Policy makers are better off tightening earlier and more gradually than later and more quickly, Fisher said on Monday. Fed policy makers next meet March 17-18. The dollar gauge, which tracks the greenback versus 10 major peers, was 0.4 percent higher on Tuesday to climb for a fifth day.

Gold for April delivery dropped as much as 0.7 percent to $1,158.70 an ounce on the Comex, the lowest for a most-active contract since Dec. 1.

Silver for immediate delivery fell as much as 0.4 percent to $15.7051 an ounce, the lowest since Jan. 5, and was at $15.723. Spot platinum dropped 1 percent to $1,135.75 an ounce, the lowest since 2009. Palladium lost 0.8 percent to $814.47 an ounce.