Investing.com - Gold prices fell towards two-week lows on Wednesday, as the curtain begins to fall on 2015. Trading volumes are expected to remain light in the final few days of the year, reducing liquidity in the market.
Gold for February delivery on the Comex division of the New York Mercantile Exchange shed $7.80, or 0.73%, to trade at $1,060.20 a troy ounce during U.S. morning hours. It earlier fell to $1,059.80, a level not seen since December 18.
Market participants were eyeing a report on U.S. pending home sales due later Wednesday after a recent run of mixed economic data failed to offer clues as to how fast the Federal Reserve will raise interest rates next year.
With the first U.S. rate hike since 2006 out of the way, investors are now focusing on the pace of future rate increases. The Fed, from its forecasts, is anticipating four rate hikes next year.
Gold is on track to post an annual decline of approximately 11% in 2015, the third yearly loss in a row, as speculation over the timing of a Fed rate hike dominated market sentiment for most of the year.
Meanwhile, silver futures for March delivery dipped 9.3 cents, or 0.67%, to trade at $13.83 a troy ounce. Silver is on track to post an annual decline of nearly 11% in 2015.
Elsewhere in metals trading, copper slipped 0.2 cents, or 0.08%, to $2.135 a pound. The red metal is on track to post an annual decline of almost 30% in 2015 amid concerns over China's economic outlook and its impact on future demand prospects.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.