Gold near lowest since 2010 on US rate hike bets

Gold is trading close to a near-six-year low. PHOTO: BLOOMBERG

SINGAPORE (REUTERS) - Gold fell for a twelfth session out of thirteen on Friday (Nov 13), trading close to a near-six-year low on rising bets that the Federal Reserve will hike US rates next month.

Spot gold was little changed at US$1,084.40 an ounce by 0029 GMT, and on track to post a fourth straight weekly dip.

The metal tumbled to US$1,074.26 in the previous session, the lowest since February 2010.

Bullion has been under pressure recently as market expectations for a December rate hike in the United States strengthened after a robust nonfarm payrolls report earlier this month.

Fed officials lined up behind a likely December interest rate hike on Thursday with one key central banker saying the risk of waiting too long was now roughly in balance with the risk of moving too soon to normalize rates after seven years near zero.

Higher rates could dent demand for non-yielding gold, while boosting the dollar, prompting investors to pull out of bullion funds ahead of an anticipated rate hike.

Assets of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell to 661.94 tonnes on Thursday, the lowest since September 2008.

Holdings of the top eight gold funds are at their lowest since March 2010.

Sustained outflows could add to the pressure on gold prices.

Other precious metals also tracked gold lower. Silver fell to a 2-1/2-month low in the previous session, and was headed for a fourth straight weekly drop.

Platinum, close to a near-seven-year low of $868.75 reached on Thursday, was eyeing its worst weekly drop in a year.

With a near 10 per cent drop, palladium was headed for its worst week since September 2011.

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