Gold Declines Due to Profit-Taking Ahead of Powell's Statements and Important U.S. Data

SadaNews Economy - Gold prices fell in trading on Tuesday after reaching a six-week high during the previous session, amid profit-taking by investors who are also awaiting statements from the Federal Reserve chairman and important economic data that may indicate a rate cut.

Gold dropped 0.3% in spot transactions to $4,223.13 an ounce, after recording its highest level since October 21 on Monday.

U.S. gold futures for December delivery fell 0.5% to $4,250.00.

The CME Group's "FedWatch" tool indicates that markets expect an 88% chance of the Federal Reserve cutting interest rates in December.

White House economic advisor Kevin Hassett stated on Sunday that he would be happy to assume the role of Federal Reserve Chair if chosen.

U.S. Treasury Secretary Scott Pessen mentioned the possibility of appointing a new chair before Christmas.

Like President Donald Trump, Hassett believes that interest rates should be lower.

Gold, which does not earn interest, tends to rise when interest rates are low.

Investors are also focusing on important data this week, including November's employment figures to be released tomorrow, Wednesday, and the personal consumption expenditures index for September scheduled for release on Friday.

Federal Reserve Chair Jerome Powell's remarks later today are expected to provide further signals regarding monetary policy.

As for other precious metals, silver decreased by 1% to $57.40 an ounce, platinum fell 0.3% to $1,652.05, while palladium rose 0.22% to $1,427.22.