Gold is trading at the lowest levels since 2010 and could go even lower as investors brace themselves for a possible US rate hike, says Saxo Bank's Ole Hansen.

Gold prices spiked briefly after the horrific attacks in Paris on November 13, but now markets are once again focusing on the possible outcome from the FOMC meeting on December 16, Hansen says. In the weeks up to the meeting, gold prices are likely to remain under pressure as uncertainty drives investors away, Hansen says. He sets out his target for gold and explain why any rally is unlikely ahead of the FOMC meeting.