Khaberni - Gold prices fell in Tuesday's trading, where the precious metal dropped by more than 1% earlier, affected by the rise in US Treasury yields and profit-taking activities after having touched its highest level in six weeks in the previous session. Meanwhile, silver prices receded from the record level recorded the previous day.
In detail, the spot gold price fell by 0.7% to $4204.50 per ounce. Similarly, US gold futures for February delivery fell by 0.9% to $4235.50 per ounce.
Independent analyst Ross Norman explained this decline, saying: "A combination of the dollar's strength, rising Treasury yields, and profit-taking have dampened some of gold's luster."
Furthermore, the markets expect the US Federal Reserve to lower interest rates in December by 88%, according to the "Fed Watch" tool by the CME Group.
Non-yielding gold tends to rise when interest rates are low.
In a related context, White House economic advisor Kevin Hassett remarked on Sunday that he would be happy to take up the post of Federal Reserve chairman if chosen, viewing, like US President Donald Trump, that interest rates should be lower. Meanwhile, US Treasury Secretary Scott Bisent mentioned the possibility of appointing a new chairman before Christmas.
Investors are currently focused on key economic data this week, including November's employment figures set to be released Wednesday, along with the Personal Consumption Expenditures index for September, which is scheduled to be released on Friday.
It is expected that statements by Federal Reserve Chairman Jerome Powell later today will provide further indications regarding monetary policy.
Regarding expectations, external analyst Carlo Alberto De Casa from Swissquote Banking Group said: "I expect gold to stabilize between four thousand dollars and $4400 over the next few weeks."
As for silver, it fell by 0.9% to $57.42 per ounce, moving away from the highest record level it registered yesterday, Monday, at $58.83 per ounce.
However, silver has risen by 98% this year, supported by the rise seen in gold and the ongoing shortage in supply, as well as its inclusion in a draft of a US critical minerals list.
Regarding other precious metals, platinum fell by 2.1% to $1622.56, while palladium increased by 3% to $1442.22.
