Investing.com - Gold prices slid lower on Tuesday, holding near the 10-month lows set in the previous session as expectations for an upcoming interest rate increase by the Federal Reserve continued to weigh on the precious metal.
Gold was down 0.26% to $1,173.45 a troy ounce by 09:42 GMT. Prices fell to lows of $1,157.00 on Monday, a level not seen since February 5.
Gold remained under pressure ahead of an expected interest rate hike by the U.S. central bank next week.
According to Investing.com's Fed Rate Monitor Tool, 100% of traders expect the Fed to raise interest rates at its December 13-14 meeting.
Both a strong dollar and higher interest rates are typically bearish for gold, which is denominated in dollars and struggles to compete with yield-bearing assets when borrowing costs rise.
The dollar was steady against a basket of six other major currencies, with the U.S. dollar index at 100.13, not far from Monday's low of 99.84, its lowest level since November 15.
The index surged to a thirteen-and-a-half year high of 102.05 last month, while gold slumped almost 8%, as U.S. bond yields climbed on expectations of higher fiscal spending and a faster pace of monetary tightening under the Trump administration.
Among other precious metals, silver for March delivery was at $16.88 an ounce, while copper for March delivery traded at $2.66 a pound.
Palladium added 0.39% to trade at $749.50 an ounce.