Bengaluru — Gold eased on Tuesday after touching a six-week high in the previous session, as rising US treasury yields and profit-taking weighed on prices, while investors awaited US economic data to gauge the Federal Reserve’s policy path.
Spot gold fell 0.4% to $4,216.13/oz by 4.36am GMT, after hitting its highest level since October 21 on Monday.
US gold futures for December delivery were down 0.7% at $4,246.60/oz.
Benchmark 10-year treasury yields hovered close to a two-week high touched in the previous session, reducing the appeal of nonyielding bullion.
“Gold is having a soft performance today, but the fundamental picture has not changed — a picture which includes anticipated US rate cuts, which should be supportive of gold from a yield point of view,” said KCM Trade chief market analyst Tim Waterer.
Markets are acting cautiously as Fed chair Jerome Powell is not expected to sound as dovish as some of his colleagues, and the core personal consumption expenditures (PCE) price index — the Fed’s preferred measure of inflation — on Friday is expected to remain fairly benign, Waterer said.
Powell, in remarks prepared for an address at Stanford University late on Monday, did not comment on the economy or monetary policy.
Investors are now awaiting key US data this week, including Wednesday’s November ADP employment report and Friday’s delayed September PCE index.
Traders are pricing in an 88% chance of a Fed rate cut in December, according to CME’s FedWatch tool.
Meanwhile, White House economic adviser Kevin Hassett said he is willing to serve as Fed chair, as treasury secretary Scott Bessent flagged a possible pre-Christmas nomination. Hassett, like President Donald Trump, wants lower rates.
Lower interest rates typically benefit nonyielding gold.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.44% to 1,050.01 metric tonnes on Monday from 1,045.43 tonnes on Friday.
Silver fell 1.5% to $57.10/oz, platinum slipped 0.5% to $1,649.72, and palladium was down 0.5% at $1,417.0.
Reuters
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