Gold slips on profit-taking as investors watch for Fed rate-cut clues
|Gold prices fell 1% on Tuesday, pressured by rising U.S. Treasury yields and profit-booking following a six-week high hit in the prior session, while silver pulled back from its record high hit the previous day.
Spot gold was quoted $4,229.60 per ounce by 1427 GMT, after falling over 1% earlier in the session.
The benchmark 10-year U.S. Treasury yield US10Y yields are hovering around 4.11% hovering near a two-week high, tracking declines in Japanese and European government bonds and diminishing the attractiveness of gold.
Although the Fed cut rates last month, Chair Jerome Powell warned against further easing this year, citing limited data.
According to CME’s FedWatch tool, traders now see an 87% likelihood of a Federal Reserve rate cut in December. Lower interest rates tend to bolster the attractiveness of non-yielding gold.
Attention is now turning to Wednesday’s November ADP employment report and Friday’s delayed September PCE index, which investors will scrutinize for signals on a potential Fed rate cut at next week’s policy meeting.
CME FedWatch:
Technical Analysis Perspective:
Gold / US Dollar:
· Gold retested a rising trendline resistance in mid-November, drawn from the August 2025 low that was broken in late October.
· Prices fell to $3,997 on November 19, 2025, before rebounding to $4,264.70 yesterday.
· A decline toward $4,065 is likely, provided rallies remain capped at $4,264/65.
· A decisive break above $4,264/65 would invalidate the bearish outlook.
Gold Daily chart:
GLD (SPDR Gold Trust) ETF:
· GLD broke below a rising trendline in late October, creating a downside gap between 377.50 and 371.
· That former trendline now acts as strong resistance around 391–393.
· GLD failed at 391 yesterday and pulled back to 386.37.
· While prices remain capped beneath the 391–393 barrier, a drop toward 378/77 appears likely.
· A decisive break above 391–393 would invalidate the bearish scenario.
GLD daily chart:
GLD Seasonality:
Since 2006, GLD has posted December rise of 0.7% in 60% of the years, while January has seen a rise of 3.6% in 70% of the years.
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