Gold falls as investors book profits, Treasury yields rise
Gold prices slipped on Tuesday, pressured by rising U.S. Treasury yields and profit-booking following a six-week high hit in the prior session, while silver pulled back from its record high hit in the previous day.
Spot gold fell 0.7% to $4,203.55 per ounce by 0917 GMT.
U.S. gold futures for February delivery were down 0.9% at $4,234.40 per ounce.
"We are seeing some traders take profit after prices rebounded from $4,000 to $4,250 in the last two weeks," said Carlo Alberto De Casa, external analyst at banking group Swissquote.
Additionally, benchmark 10-year U.S. Treasury yields held steady near a two-week high, following weakness in Japanese and European government bonds, reducing the appeal of non-yielding bullion.
Data on Monday showed U.S. manufacturing contracted for the ninth straight month in November. Investors are now looking out for Wednesday's November ADP employment report and Friday's delayed September PCE Index, for clues on a Fed interest rate cut at the central bank's meeting next week.
Fed Chair Jerome Powell did not comment on the economy or monetary policy in an address at Stanford University late on Monday.
Traders are pricing in an 87% chance of a December Fed rate cut, per CME's FedWatch tool.
Lower interest rates typically benefit non-yielding gold.
Markets are also waiting on President Donald Trump's announcement of the new Federal Reserve chairman, with White House economic adviser Kevin Hassett reportedly emerging as a frontrunner. Hassett, like Trump, favors lower interest rates.
"I expect gold to consolidate laterally between $4,000 and $4,400 in the next few weeks," De Casa said, adding that a Fed rate cut could open space for further rallies.
Silver pulled back from Monday's record high of $58.83 per ounce, easing 1.6% to $57.01 per ounce. Spot silver is up 97% for the year, bolstered by growing safe-haven and industrial demand.
Platinum slipped 0.9% to $1,642.56, and palladium was up 0.8% at $1,435.44.
Source : Reuters.com
