US Fed's hike anticipations weigh on gold prices

There is a high possibility of US Federal Reserve hiking its near zero interest rates in December, almost after a decade. These anticipations have increased the dollar strength and yields as well. 

But there was pressure seen on precious metal prices, the gold prices were falling almost to a 6-year low. However, gold prices are unlikely to change much over the $USD 1200 mark in the foreseeable future.

"Further appreciation of the U.S. dollar into early-2016 is likely to push precious metals prices down further in the coming weeks. Thereafter, prices should turn the corner as the U.S. dollar comes off its high, and inflation begins to normalize", says Danske bank in a research note.

Spot gold climbed slightly to $1,072.70 an ounce, after falling 0.4 pct yesterday.