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By Bloomberg

Gold held the biggest loss in almost eight weeks after applications for U.S. jobless benefits declined last week to the lowest in 15 years, boosting bets the Federal Reserve may raise interest rates sooner.

Bullion for immediate delivery traded at $1,183.07 an ounce at 8:45 a.m. in Singapore from $1,184.37 on Thursday, according to Bloomberg generic pricing. The metal tumbled 1.7 percent on April 30, the most since March, to erase this year’s gains. Prices are poised to advance 0.4 percent this week.

The drop for unemployment claims underscores the Fed’s outlook that drags on economic growth earlier this year were “transitory.” Data on Thursday also showed wages for private- sector employees climbed. Bullion fell in February and March on speculation the central bank would raise interest rates. Higher interest rates typically drive investors to favor assets with better yield prospects, such as equities, especially as U.S. inflation stays low.

“Bullion dropped and broke below the psychological $1,200 an ounce level as U.S. jobless claims fell to a 15-year low,” James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note. “Gold’s decline came as the markets continued to digest the recent Federal Open Market Committee statement.”

First-time filings for unemployment insurance fell by 34,000 to 262,000 in the week ended April 25, the lowest since April 15, 2000, the Labor Department reported Thursday. Private- sector wages rose 0.7 percent in the first quarter and were up 2.8 percent in the 12 months through March, the biggest gain in more than six years, Labor Department data showed.

Gold for June delivery traded at $1,182.60 on the Comex from $1,182.40 on Thursday, when it fell 2.3 percent.

Silver for immediate delivery lost 0.2 percent to $16.1255 an ounce after dropping 2.4 percent on Thursday, the most since Feb. 17. Prices are still set to climb 2.5 percent this week, the biggest gain since the period ended March 20.

Platinum retreated 0.4 percent to $1,141.38 an ounce, trimming its weekly increase to 1.5 percent. Palladium added 0.1 percent to $778.65 an ounce, set for a weekly advance.