Gold prices softened during Tuesday’s Asian session, pressured by a rebound in U.S. Treasury yields as traders grew more cautious ahead of a packed economic calendar and next week’s pivotal Federal Reserve decision.

Spot gold fell 0.4% to $4,213.97 per ounce at 02:41 ET (06:41 GMT), retreating after hitting a six-week high in the previous session. U.S. gold futures dropped 0.7% to $4,245.55.

Gold retreats as yields climb

The metal’s pullback tracked a rise in benchmark 10-year Treasury yields, which reached their highest level in nearly two weeks. The uptick reduced demand for bullion, which offers no yield, and cooled some of the enthusiasm tied to expectations of an imminent Fed rate cut.

Even so, broader sentiment toward gold stayed supportive. Market pricing still points to a strong chance that the Federal Reserve will cut rates next week, with investors expecting easing inflation and softer labor data to give policymakers space to act.

A rate reduction typically provides a tailwind for gold by lowering the opportunity cost of holding the metal.

Still, traders were cautious about increasing exposure ahead of several major economic releases.

This week’s data includes the November ADP private-sector jobs report and the long-delayed September PCE Price Index — the Fed’s preferred inflation measure — both of which could sway expectations around the pace of future rate cuts.

Uncertainty around future Fed leadership also added an element of hesitation.

President Donald Trump said Sunday that he has chosen a nominee to replace Fed Chair Jerome Powell, though he declined to reveal the name.

Speculation intensified after reports suggested that White House economic adviser Kevin Hassett may be among the leading candidates.

Metals trade lower; silver eases from record levels

Price action across other precious and industrial metals was subdued as markets trimmed risk heading into the Fed meeting.

• Silver futures slid 2.1% to $57.88 per ounce, pulling back after touching an all-time high of $59.44 on Monday.
• Platinum futures dipped 0.6% to $1,661.60 per ounce.
• LME copper slipped 0.3% to $11,228.20 a ton.
• U.S. copper futures were unchanged at $5.27 per pound.

Gold price

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