Key Moments
- Spot gold declined 0.4% to $4,213.97 per ounce in Asian trading, retreating from a six-week high hit in the prior session.
- Rising benchmark 10-year U.S. Treasury yields pressured non-yielding bullion and tempered optimism over a near-term Federal Reserve rate cut.
- Silver futures dropped 2.1% from a record peak, while platinum and copper prices also traded softer as investors reduced risk ahead of key U.S. data and the Fed decision.
Gold Retreats as Yields Climb
Gold prices moved lower in Asian trade on Tuesday as a recovery in U.S. Treasury yields weighed on the precious metal and curbed recent bullish momentum.
Spot gold was down 0.4% at $4,213.97 per ounce as of 02:41 ET (06:41 GMT), after reaching a six-week high in the previous session. U.S. Gold Futures were 0.7% lower at $4,245.55.
The decline followed a move in benchmark 10-year Treasury yields, which hovered near a two-week high. The firmer yields reduced the appeal of non-yielding bullion and cooled enthusiasm that had built around expectations for a near-term Federal Reserve interest-rate cut.
#Xau
Gold today is weak relative to other assets trading against USD. QT end makes stock market more attractive for investors so maybe we will see some kind of taking profits and money outflow from gold to stocks. pic.twitter.com/MaXXdMN5EB— N T S 🇬🇪 (@nts_trades) December 2, 2025
Fed Expectations and Key U.S. Data in Focus
Despite the latest pullback, overall sentiment toward gold remained generally supportive. Market pricing continued to indicate solid expectations that the Fed could implement another rate cut next week, with investors positioning around evidence of moderating inflation and signs of a cooling labor market that could give policymakers latitude to ease policy.
A reduction in interest rates would typically benefit gold by lowering the opportunity cost of holding safe-haven metals.
However, traders were cautious about establishing large positions ahead of several high-impact U.S. economic releases. The November ADP private-sector employment report and the delayed September Personal Consumption Expenditures (PCE) Price Index – the Fed’s preferred inflation barometer – were scheduled for release this week. Both data points had the potential to materially influence expectations on the timing and magnitude of any policy easing.
Uncertainty Around Fed Leadership Weighs on Sentiment
Gold markets were also contending with a layer of political uncertainty surrounding the Federal Reserve’s leadership. U.S. President Donald Trump said on Sunday that he had decided on a nominee to replace Fed Chair Jerome Powell but did not reveal the candidate.
The remark left investors speculating over possible appointees, with some reports indicating that White House economic adviser Kevin Hassett was viewed as one of the leading contenders.
Metals Complex Softens as Positions Are Trimmed
Price action across the broader metals space was subdued on Tuesday as participants adjusted risk exposure ahead of the Fed’s upcoming policy decision.
| Contract | Price | Move | Notes |
|---|---|---|---|
| Spot Gold | $4,213.97/oz | -0.4% | After a six-week high in the prior session |
| U.S. Gold Futures | $4,245.55 | -0.7% | Weighed by higher Treasury yields |
| Silver Futures | $57.88/oz | -2.1% | Off record highs of $59.44 hit on Monday |
| Platinum Futures | $1,661.60/oz | -0.6% | Tracked broader softness in precious metals |
| Benchmark Copper Futures (LME) | $11,228.20/ton | -0.3% | Edged lower ahead of Fed decision |
| U.S. Copper Futures | $5.27/lb | Steady | Little changed despite risk trimming |
Silver futures dropped 2.1% to $57.88 per ounce after setting record highs of $59.44 on Monday. Platinum Futures declined 0.6% to $1,661.60 per ounce.
In industrial metals, Benchmark Copper Futures on the London Metal Exchange eased 0.3% to $11,228.20 a ton. U.S. Copper Futures were unchanged at $5.27 a pound as participants largely held steady positions, awaiting clearer signals from upcoming U.S. data and the Fed’s policy announcement.
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