On Tuesday, gold and silver remain under pressure as market players are preparing for the interest rates rise by Fed next month.
During early US trading, on the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell $ 1.00, or 0.09%, to $ 1087.10 per troy ounce. A day earlier, the prices rose 40 cents, or 0.04%.
On Friday, the price of gold fell to $ 1084.50, the lowest level since August 7 after data showed that the US economy has created in October more jobs than expected, strengthening the expectations of a rate hike by Fed next month.
According to the CME Group (O: CME), the likelihood that the Fed will raise interest rates in December soared to 70%.
Meanwhile, silver futures for December delivery fell 6.3 cents, or 0.44%, to $ 14.35 per troy ounce. Earlier, prices collapsed to $ 14.31, the lowest level since 15 September.
USD index is traded near seven-month highs against a basket of currencies on expectations of tighter monetary policy of the Fed in the near future. A strong US dollar, as a rule, is putting pressure on gold, as it reduces the attractiveness of the metal as an alternative asset and increases in price the dollar-denominated commodities for holders of other currencies.
In anticipation of the upcoming meeting in December to determine the monetary policy of the Fed, the speeches of Central Bank officials particularly attract the attention the markets. Chicago Fed President, Charles Evans, should take part in debates on US government debt.
Looking for fresh indications of the economy and the likelihood of a rate hike in December, investors focused on US statistics, the publication of which is scheduled for this week. On Friday, the United States plans to release data on retail sales, producer prices and consumer sentiment.
Since mid-October, gold prices lost 8.5% as investors revised their expectations of monetary policy after the US bellicose signals from the Fed.
On Tuesday copper prices declined for sixth consecutive session and reached the lowest level since July 2009, after China's inflation data underscored concerns about the health of the second largest economy in the world.
During early London trading, on Comex division of the New York Mercantile Exchange, copper futures for December delivery fell 0.8 cents, or 0.37%, to reach $ 2.222 per pound. Earlier, prices collapsed to $ 2.211, more than six-year low.
On Monday, the price fell 1.2 cents, or 0.54%, after China's trade figures for October disappointed expectations of market analysts.
Government data released earlier showed that China's CPI in October rose only 1.3% in annual terms, slowing from 1.6% in September. Economists had forecasted an increase of 1.5%.
China's producer price index fell in October by 5.9% in annual terms, falling already the 44th month in a row and showing the worst dynamics since October 2009.
Disappointing data reinforced the view that the economy continues to slow down, requiring policymakers in Beijing more measures to stimulate growth in the coming months.
China is the world's largest consumer of copper, accounting for almost 40% of world consumption last year.