By Glenys Sim

June 26 (Bloomberg) -- Gold gained for a fourth day, poised for the first weekly increase in four, as investor expectations of record-low U.S. interest rates boosted demand for the metal as a store of value and a rally in the dollar faltered.

The Federal Reserve this week left its key bank-lending rate target at zero to 0.25 percent and said it is likely to remain at “exceptionally low levels” for an “extended period.”

The Dollar Index, a six-currency measure of the greenback’s value, fell for a second day today on speculation global central banks’ efforts to stabilize the economy will boost demand for higher-yielding assets.

“Tactical investors have rapidly increased their exposure to gold over the past two months, and in turn this has supported the strengthening of the correlation between the U.S. dollar and gold prices,” Barclays Capital analysts led by Gayle Berry said in an e-mailed report.

Gold for immediate delivery was at $943.82 an ounce at 2:18 p.m. in Singapore, 1.1 percent higher this week, snapping the longest losing streak since April 17.

Still, “it may be difficult for gold to make further headway,” James Steel, an analyst at HSBC Securities, said in a note. “Given slack emerging-market gold consumption, unless there is a pickup in investment demand, which is mostly in the ETFs, it may be difficult for gold to trade higher.”

Assets in the SPDR Gold Trust, the biggest exchange-traded fund backed by bullion, fell 5.5 metric tons to 1,125.74 tons yesterday, according to figures on the company’s Web site. That is the biggest tonnage drop since a 13.45-ton decline April 17.

Among other precious metals for immediate delivery, silver advanced 1.2 percent to $14.1875 an ounce, platinum gained 1.2 percent to $1,203.50 an ounce, and palladium was little changed at $244.30 an ounce as of 2:21 p.m. in Singapore.