Gold dropped before the Federal Reserve’s meeting this week as investors bet that policy makers will raise U.S. interest rates for the first time in almost a decade. Silver slipped to a six-year low.
Traders see a 78 percent probability that the Fed will raise borrowing costs at the Dec. 15-16 meeting, according to data tracked by Bloomberg. Higher rates tend to strengthen the dollar and cut the appeal of holding precious metals, which don’t pay interest. Shares of Barrick Gold Corp., the world’s largest producer of the metal, and Goldcorp Inc. tumbled.