Investing.com - Gold prices sank to the lowest level since February 2010 on Thursday, as investors awaited comments from a range of Federal Reserve speakers for further indications on the likelihood of a December rate hike.
Gold for December delivery on the Comex division of the New York Mercantile Exchange shed $5.00, or 0.46%, to trade at $1,079.90 a troy ounce during U.S. morning hours. It earlier fell to $1,073.40, the lowest level in more than five years.
Gold prices have lost almost 9% since mid-October as investors slashed holdings of the precious metal amid expectations the Federal Reserve will raise interest rates at its next meeting in December.
The likelihood of a December interest rate increase by the Fed surged to 70%, according to Fed funds futures data from the CME Group (O:CME), after data showing the U.S. economy created more jobs than expected in October.
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.
St. Louis Fed President James Bullard said Thursday he was in favor of increasing interest rates, despite concerns over weak inflation. Fed Chair Janet Yellen didn't comment on the economy or on monetary policy when she gave welcoming remarks at a Fed conference in Washington.
Other Fed members speaking Thursday include, Fed Vice Chair Stanley Fischer, New York Fed President William Dudley, Richmond Fed President Jeffrey Lacker and Chicago Fed President Charles Evans.
Elsewhere in metals trading, copper prices plunged to the lowest level since July 2009 on Thursday, as the possibility of higher borrowing costs in the U.S. and slower global economic growth haunted risk-related assets.
Prices of the red metal are down more than 25% since May amid indications China's economy is losing momentum, fueling fears over slackening demand for the industrial metal.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption.