(Bloomberg) -- Gold slipped to a 10-month low and investors fled bullion-backed funds at the fastest pace in three years as the Federal Reserve signaled it will raise interest rates faster than previously expected.

The metal fell as much as 1.1% in London. While traders unanimously predicted the Fed would raise borrowing costs on Wednesday, policy makers now expect three increases in 2017, up from the two seen in September.

Gold is being beaten lower by the outlook for U.S. rates and a stronger dollar, while expectations that President-elect Donald Trump will stoke growth through spending has helped push American equities to records. That has spurred investors to dump bullion held in ETFs, with assets plunging by the most since 2013 as of Wednesday.

"The market will stay under pressure for the foreseeable future as we head towards year-end," David Govett, head of precious metals trading at Marex Spectron Group in London, said by e-mail. "ETF selling remains elevated."

Gold for immediate delivery lost 1% to $1,131.34 an ounce, according to Bloomberg generic pricing. Prices touched the lowest since Feb. 3, cutting this year’s gain to 6.6%. Higher borrowing costs tarnish bullion’s allure as the metal doesn’t bear interest.

Holdings in gold ETFs dropped by 21.8 metric tons, the biggest daily outflow since July 2013, data compiled by Bloomberg show. Assets have fallen for 24 days to 1,808.8 tons, the lowest since June.

Gold-mining stocks have also been hit. The FTSE/JSE Africa Gold Mining Index fell as much as 6% to the lowest since January in Johannesburg. The decline was led by AngloGold Ashanti and Harmony Gold Mining.

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