Gold held a second day of declines as investors continued to expect an increase in U.S. borrowing costs by the end of the year, cutting the appeal of bullion which doesn’t pay interest.

Metal for immediate delivery was at $1,070.25 an ounce at 8:43 a.m. in Singapore from $1,069.18 on Monday, according to Bloomberg generic pricing. Prices fell to $1,064.55 on Nov. 18, the lowest since February 2010.

Federal Reserve policy makers are widely expected to increase the federal funds rate for the first time since 2006 when they meet in Washington Dec. 15-16, pushing up the dollar and pressuring gold. The chances of a rate rise next month are 74 percent, up from 50 percent at end-October, futures data show.

Spot silver was little changed after slumping to the lowest since August 2009 on Monday.

Source: Bloomberg