Gold prices fell on Tuesday, weighed down by higher U.S. bond yields, as markets await inflation data that could shed light on the scale of an expected interest rate cut from the Federal Reserve next month.
Spot gold fell 0.2% to $2,512.63 per ounce, as of 9:53 a.m. ET (1353 GMT), having eased from the record high of $2,531.60 hit last week. U.S. gold futures eased 0.3% to $2,547.90.
The benchmark U.S. 10-year yields rose, making the non-yielding bullion less attractive for overseas buyers.
Investors now await data for the Personal Consumption Expenditures (PCE), a key inflation report and the Fed's preferred inflation gauge, on Friday.
Traders see a 71.5% chance of a 25-basis-point (bp) rate cut in September and about a 28.5% probability of a bigger 50-bp reduction, according to the CME FedWatch tool.
Among other metals, spot silver fell 0.1% to $29.88 per ounce and platinum was down 0.6% to $956.20, while palladium gained 0.4% to $962.75.
Source: Reuters
