Gold is currently at $1,071.80 (-0.44%) trading in a narrow range ahead of next week's Federal Open Markets Committee meeting. The central bank of the U.S. is widely expected to raise interest rates in December. Higher rates increase the opportunity cost of holding the non-interest paying precious metal and reduce demand for it.

Generally weak commodity prices, particularly crude oil, weigh on gold as well. Weakness in oil could raise deflation fears, while gold is normally used to protect funds against inflation.