PT Equityworld-Gold prices slumped to more than 10 months at the end of trading on Tuesday morning (13/12), hit by the strengthening expectations of rising US interest rates this week pushed US Treasury yields.

LLG spot gold price rose 0.3 percent to $ 1,162.30 an ounce, after hitting its lowest since February 5 at $ 1,151.34 per ounce, as the closing session of the third straight decline.

US gold futures for February delivery closed at $ 1,165.80 per ounce.

The US Federal Reserve is expected to raise interest rates for the second time in a decade on a two-day meeting that starts on Tuesday. But bets are now being placed on a rate hike next year.

Market pricing in nearly 100 percent chance of a Fed rate hike.

The dollar index, which measures the greenback against major currencies, hovering near 10-month highs as oil prices soared.

Putting further pressure on gold is the rise in yields on 10-year US Treasury to the highest level in two years. The increase in revenues of US bonds is seen as negative for the metal.

PT Equityworld Gold is very sensitive to rising interest rates, which raised the opportunity cost of holding a non-superior asset like gold, while the dollar rose.

Owners SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.38 percent to 857.45 tonnes on Friday. Ownership has fallen about 9 percent since November.

Hedge fund managers and financial managers cut their net long positions in gold and silver for the fourth row, data from the US Commodity Futures Trading Commission showed on Friday. Gold, they cut their net long position by becoming 80 814 22 578.

Among other precious metals, silver was steady at $ 16.85 per ounce.

Platinum was down 0.2 percent at $ 911.99. Palladium rose 0.3 percent to $ 731.70.

Analyst PT Equityworld Research Center estimates that the price of gold for the next trade will move weaker with stronger expectations of rising US interest rates this week. The gold price is expected to move in the range of $ 1,160- $ 1.158 Support, but if the price rises will move in the range of $ 1,164- $ 1.166 Resistance.