Gold slips close to 6-year lows on stronger dollar

Investing.com – Gold prices slipped lower in European morning hours on Friday, hovering close to a 6-year trough as growing expectations for a U.S. rate hike next month continued to support demand for the dollar.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were down 0.25% at $1,067.40.

Futures were likely to find support at $1,064.00, the low from November 18 and a six-year low and resistance at $1,079.40, the high from November 24.

The greenback remained broadly supported after a string of upbeat U.S. data released over the week added to expectations that the Federal Reserve will raise interest rates next month.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.81, just below Wednesday’s eight-month peak of 100.21.

Gold futures are down more than 6% so far in November amid expectations for a December liftoff in U.S. interest rates.

Expectations of higher borrowing rates is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Elsewhere in metals trading, silver futures for December delivery dropped 0.44% to $14.095 a troy ounce, while copper futures for March delivery slid 0.30% to $2.084 a pound.

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