Gold Slips as Rising U.S. Yields Trigger Profit-Taking Ahead of Key Economic Data
Gold prices eased on Tuesday after touching a six-week high in the previous session, weighed down by rising U.S. Treasury yields and investor profit-taking. Spot gold slipped 0.4% to $4,216.13 per ounce by 0436 GMT, while U.S. gold futures for December delivery fell 0.7% to $4,246.60. Benchmark 10-year Treasury yields hovered near a two-week high, diminishing the appeal of non-yielding bullion. Despite the dip, analysts say expectations of U.S. interest rate cuts continue to support the broader outlook for gold.
Market sentiment remained cautious as investors awaited key U.S. economic data, including Wednesday’s ADP employment report and Friday’s delayed September core PCE Index, the Federal Reserve’s preferred inflation gauge. Fed Chair Jerome Powell, in prepared remarks for a Stanford University event late Monday, avoided comments on the economy or policy direction. Traders are currently pricing in an 88% chance of a December rate cut, according to CME’s FedWatch tool, while analysts anticipate Powell may adopt a less dovish tone than some of his colleagues.
Adding to the policy backdrop, White House economic adviser Kevin Hassett signaled willingness to serve as the next Fed chair, aligning with President Donald Trump’s preference for lower rates. SPDR Gold Trust, the world’s largest gold-backed ETF, reported a 0.44% rise in holdings to 1,050.01 metric tons. In other precious metals, silver dropped 1.5% to $57.10 per ounce, platinum declined 0.5% to $1,649.72, and palladium eased 0.5% to $1,417.00.
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