Gold prices fell 1.0 per cent on Tuesday, pressured by rising US Treasury yields and profit-booking following a six-week high hit in the prior session, while silver pulled back from its record high hit the previous day, reports Reuters.
Spot gold lost 0.7 per cent to $4,204.50 per ounce by 1215 GMT, after falling over 1 per cent earlier in the session.
"The combination of a stronger dollar, higher Treasury yields and profit-taking have conspired to take some shine off of gold," said independent analyst Ross Norman.
The US dollar rebounded after hitting a two-week low in the previous session. Meanwhile, benchmark 10-year US Treasury yields hit a near a two-week high, following weakness in Japanese and European government bonds, reducing the appeal of non-yielding bullion.
Data on Monday showed US 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.
Traders are pricing in an 87 per cent chance of a December Fed rate cut, according to CME's FedWatch tool.
Lower interest rates typically benefit non-yielding gold.
"I expect gold to consolidate laterally between $4,000 and $4,400 in the next few weeks," said Carlo Alberto De Casa, external analyst at banking group Swissquote.
Silver pulled back from Monday's record high of $58.83 per ounce, easing 0.9 per cent to $57.42 per ounce.
"With a dramatic move that we saw to threshold highs, it's not unusual seeing a bit of profit-taking off the top," said Norman.
Silver is up 98 per cent this year, supported by gold's bull run, a persistent supply deficit, and its inclusion on a draft list of US critical minerals.
Platinum slipped 2.1 per cent to $1,622.56, and palladium was up 1.3 per cent at $1,442.22.
Gold prices fall 1.0pc as investors book profits
FE Team | Published: December 02, 2025 21:57:36
Gold prices fall 1.0pc as investors book profits
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