The decline followed a rise in benchmark 10-year Treasury yields, which climbed to a near two-week peak and weakened appetite for non-yielding assets like bullion. The stronger yields also dampened some optimism surrounding expectations of an imminent Fed rate cut.
Even with Tuesday’s pullback, the broader outlook for the metal remained constructive. Futures markets still imply that the Fed is likely to lower interest rates next week, supported by easing inflation trends and signs of a cooling labor market — factors that typically enhance gold’s appeal by reducing the opportunity cost of holding it.
However, investors were hesitant to take big positions ahead of multiple high-impact data releases.
This week’s calendar includes the November ADP private employment report and the delayed September PCE Price Index, the Fed’s preferred gauge of inflation. Both figures could meaningfully influence expectations for monetary easing in the months ahead.
Uncertainty over the Federal Reserve’s future leadership also kept traders on edge.
President Donald Trump said on Sunday that he has selected a nominee to replace Fed Chair Jerome Powell, but declined to reveal the name. Reports suggest that White House economic adviser Kevin Hassett may be among the top contenders.
Metals trade lower; silver falls after record peak
Other precious and base metals also weakened as investors trimmed risk and positioned cautiously ahead of next week’s central bank meeting.
- Silver futures dropped 2.1% to $57.88 per ounce after briefly touching an all-time high of $59.44 on Monday.
- Platinum futures slipped 0.6% to $1,661.60 per ounce.
- LME copper eased 0.3% to $11,228.20 per ton.
- U.S. copper futures held steady at $5.27 per pound.
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