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Gold Holds Near 5-Year Low as Bets Climb on December Rate Rise

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Gold futures traded near the lowest since 2010 as investors prepared for the possibility that the Federal Reserve will increase U.S. interest rates next month, reducing the metal’s appeal as a store of value.

Prices are trapped in their worst rout since July as the outlook for higher rates diminishes the appeal of the metal against competing assets that pay interest. San Francisco Fed President John Williams said this weekend that there is a “strong case” for a rate increase in December if U.S. data hold up. The dollar reached a seven-month high against the euro, cutting demand for alternatives.