Investing.com - Gold struggled near six-year lows on Monday, as a broadly stronger U.S. dollar combined with growing confidence the Federal Reserve will raise interest rates when in meets next month continued to weigh.
Gold for February delivery on the Comex division of the New York Mercantile Exchange dipped 50 cents, or 0.05%, to trade at $1,055.70 a troy ounce during European morning hours. Gold fell to $1,051.60 on Friday, the lowest since February 2010.
Prices of the precious metal declined $13.80, or 1.88%, last week, the sixth straight weekly loss. For the month, gold is down 7.5%, 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.
The dollar index rose to the highest level since April, amid growing expectations for tighter monetary policy in the U.S. in the coming months. Dollar-priced commodities become more expensive to investors holding other currencies when the greenback gains.
In the week ahead, investors will be focusing on Friday’s U.S. nonfarm payrolls report for November, the last jobs report before the Fed decides on interest rates at its December 15-16 meeting.
Market players will also pay close attention to a speech by Fed Chair Janet Yellen on Wednesday and congressional testimony on Thursday.
The outcome of Thursday’s European Central Bank meeting will also be in focus amid speculation the central bank could ramp up its monetary stimulus program.
Meanwhile, silver futures for December delivery inched up 4.2 cents, or 0.3%, to trade at $14.05 a troy ounce. Prices hit $13.85 last week, the weakest since August 2009.
Elsewhere in metals trading, copper edged lower on Monday, as ongoing strength in the U.S. dollar weighed on the red metal.
Copper is down almost 11% so far in November as expectations of higher interest rates in the U.S. and slower global economic growth, especially in China, weighed.