Investing.com - 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 Federal Reserve rate hike dominated market sentiment for most of the 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.
Rising interest rates historically have been bad news for gold, which can't compete with the higher interest rates offered by other assets.
Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $1.60, or 0.15%, to trade at $1,061.40 a troy ounce during European morning hours. A day earlier, gold fell $8.20, or 0.77%, to end at a two-week low.
Gold prices ticked higher in quiet year-end trading on Thursday, as investors looked ahead to upcoming U.S. data to gauge if the world's largest economy is strong enough to withstand further rate hikes in 2016.
The U.S. is to produce weekly data on initial jobless claims at 8:30AM ET, followed by a report on manufacturing activity in the Chicago region at 9:45AM. A recent run of mixed economic data failed to offer clues as to how fast the Fed will raise rates next year.
Meanwhile, silver futures for March delivery inched up 3.3 cents, or 0.24%, to trade at $13.87 a troy ounce. Silver is on track to post an annual decline of nearly 11% in 2015.
Elsewhere in metals trading, copper shed 0.5 cents, or 0.24%, to $2.142 a pound. The red metal is on track to post an annual decline of almost 25% in 2015 as concerns over the health of China's slowing economy dominated sentiment for most of the year.
The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.