Gold Prices Decline Amid Rising U.S. Treasury Yields

According to Odaily, gold prices fell on Tuesday from a six-month high, with spot gold dropping below $4,200 per ounce. This decline is attributed to rising U.S. Treasury yields and profit-taking, as investors await U.S. economic data to assess the Federal Reserve's policy direction. The benchmark 10-year U.S. Treasury yield remained near a two-week high, diminishing the appeal of non-yielding assets like gold. Tim Water, Chief Market Analyst at KCM Trade, noted that while gold's performance was weak today, the fundamentals remain unchanged, including the anticipated Federal Reserve rate cuts, which should support gold prices from a yield perspective. The market remains cautious, with expectations that the core PCE price index, a key inflation measure favored by the Federal Reserve, will remain moderate when released on Friday. Additionally, important U.S. data this week includes the November ADP employment report on Wednesday.