Investing.com - Gold and silver struggled near five-and-a-half-year lows on Monday, as investors braced for a hike in interest rates by the Federal Reserve next month.
Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $4.40, or 0.41%, to trade at $1,071.90 a troy ounce during European morning hours. It earlier fell to $1,066.50, not far from last week's low of $1,062.00, a level not seen in almost six years.
Gold futures are nearly 10% below highs hit in mid-October amid mounting expectations the Fed will raise rates for the first time in nearly a decade at its mid-December meeting.
Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.
Meanwhile, silver for December delivery declined 8.1 cents, or 0.57%, to trade at $14.01 a troy ounce after falling to $13.87 earlier, the weakest since August 2009.
The U.S. dollar climbed to the highest level since April against a basket of six other major currencies, weighing further on metal prices. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
In the week ahead, market players will focus on a flurry of U.S. economic data due on Wednesday for further indications on the strength of the economy and the likelihood of a December rate hike.
U.S. markets will be closed Thursday for the Thanksgiving holiday and Friday will be a half day.
Elsewhere in metals trading, copper sank to the lowest level since May 2009 on Monday, as the possibility of higher interest rates in the U.S., a broadly stronger U.S. dollar and slower global economic growth, especially in China, weighed.
Prices of the red metal are down nearly 30% since May as fears of a China-led global economic slowdown spooked traders and rattled sentiment.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.