Gold declined to $1,068.30 (-0.35%) as investors prepared for an imminent U.S. rate hike. The central bank of the U.S. is widely expected to raise rates in December. Higher rates increase the opportunity cost of holding the non-interest paying precious metal and reduce demand for it. Bullion is on track to post the seventh weekly decline.

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.

Assets in SPDR Gold Trust, the biggest gold exchange traded fund, are at their lowest since September 2008, while options data suggest that investors are ready for the price to decline to $1,000 an ounce.