Gold Prices Decline Amid Rising Bond Yields and Profit-Taking
The precious metal markets experienced a downturn on Tuesday, with gold prices falling more than 1% as U.S. Treasury bond yields rose and investors took profits after reaching a six-week high in the previous session.
Gold declined by $54, settling at $4,220.80 per ounce, while November gold futures dropped 1% to $4,227.70.
Independent analyst Ross Norman commented, "Factors such as the strength of the dollar, rising Treasury yields, and profit-taking have diminished gold's appeal."
Investors are also awaiting remarks from Federal Reserve Chairman Jerome Powell scheduled for later today, which may provide further insights into monetary policy direction. The CME Group's "FedWatch" tool indicates an 88% probability of an interest rate cut at the upcoming December meeting.
In this context, White House economic advisor Kevin Hassett expressed on Sunday his willingness to assume the role of Federal Reserve Chairman if selected. U.S. Treasury Secretary Scott Pruitt mentioned the possibility of appointing a new chairman before Christmas. Both Hassett and President Donald Trump tend to favor lower interest rates, which is generally seen as supportive for non-yielding gold.
The market is also focused on important economic data this week, including November employment figures to be released on Wednesday and the personal consumption expenditures index for September expected on Friday.
Carlo Alberto De Casa, an external analyst at Swissquote, shared his outlook, stating, "I expect gold to remain between $4,000 and $4,400 in the coming weeks."
In the silver market, prices fell from a record high of $58.83 reached on Monday, stabilizing at $57.42 per ounce, down 0.9%. Notably, silver has surged 98% since the beginning of the year, driven by rising gold prices, ongoing supply deficits, and its designation as a critical metal in the U.S.
Regarding other precious metals, platinum decreased by 2.1% to $1,622.56, while palladium rose by 3% to $1,442.22 per ounce.
