Gold prices were on track for their 10th straight day of losses Wednesday, as investors fled the precious metal on fears of continued dollar strength and a rate increase from the Federal Reserve in coming months. Gold for August delivery, the most actively traded contract, was recently down 1.5% at $1,086.90 a troy ounce on the Comex division of the New York Mercantile Exchange. The precious metal is on track for its longest losing streak since 1996. Investors have been selling gold on anticipation that the Federal Reserve will soon raise interest rates for the first time in nearly a decade. Fed Chairwoman Janet Yellen last week reiterated the central bank's plans to raise rates this year, prompting many investors to adjust their expectations for the path of U.S. monetary policy and its impact on gold prices. The precious metal doesn't pay interest or dividends and would struggle to compete with bonds and stocks that do when interest rates climb. At the same time, expectations of higher rates are sending the dollar higher, further pressuring gold, which is priced in the U.S. currency and becomes more expensive to foreign buyers when the buck climbs. The Wall Street Journal Dollar Index, which gauges the U.S. dollar against a basket of 16 currencies, was recently up 0.3% at 88.48. "Gold is navigating very dangerous waters, where an unexpected sharp drop to levels significantly below $1,000 an ounce is possible," said Bart Melek, head of commodities strategy at TD Securities. Other precious metals fell alongside gold. Silver for September delivery was recently down 0.7% at $14.685 a troy ounce. October platinum was down 1.7% at $968 a troy ounce. Palladium for September delivery was down 2.2% at $615.80 a troy ounce.
Continue Reading Below