Gold traded near the lowest in more than five years as a report showed a pickup in U.S. consumer prices, strengthening bets that the Federal Reserve will raise interest rates as soon as next month.

Bullion for immediate delivery traded at $1,070 an ounce at 8:09 a.m. in Singapore from $1,070.30 a day earlier, when prices sank 1.2 percent, according to Bloomberg generic pricing. The metal tumbled to $1,065.60 on Tuesday, the lowest since February 2010.

Gold has dropped 9.7 percent this year on speculation that improving U.S. growth will lead policy makers to raise borrowing costs, curbing the appeal of gold because it doesn’t pay interest. Fed officials will release minutes from their Oct. 27-28 meeting on Wednesday at which they signaled that they would be open to a move in December if labor market conditions continued to improve and they were confident inflation would head back toward their 2 percent target in the medium term.

The core consumer-price index increased 0.2 percent for a second month as rents continued to climb and health-care costs rebounded, a Labor Department report showed Tuesday. It was the strongest back-to-back reading since May and April and shows inflation edging closer toward the Fed’s goal.

Source: Bloomberg