Gold prices fell as U.S. Treasury yields strengthened, with the market focusing on U.S. economic data

Gold prices fell back from a more than six-month high on Tuesday, with spot gold losing the $4200 per ounce mark during the day. This decline was partly due to rising U.S. Treasury yields and profit-taking, while investors awaited U.S. economic data to assess the Federal Reserve's policy path. The benchmark 10-year U.S. Treasury yield remained near a two-week high, diminishing the appeal of non-yielding assets like gold.

KCM Trade's chief market analyst Tim Water noted, "Gold is performing weakly today, but the fundamentals remain unchanged— including the anticipated Fed rate cuts, which should support gold prices from a yield perspective." Market sentiment is cautious, with expectations that the core PCE price index, a favored inflation gauge by the Fed, will remain moderate when released on Friday. Additionally, key U.S. data this week includes the November ADP employment report on Wednesday. (Gold Ten)