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

According to Mars Finance, gold prices fell from a more than six-month high on Tuesday, with spot gold dropping below 4200 USD/ounce during the day. This was partly due to the rise in US Treasury yields and profit-taking that weighed on prices, while investors awaited US economic data to assess the Fed's policy path. The benchmark 10-year US Treasury yield remained near a two-week high, diminishing the appeal of non-interest-bearing assets like gold. KCM Trade's chief market analyst, Tim Water, noted: “Gold performed weakly today, but the fundamentals remain unchanged—including the expected Fed rate cuts, which should support gold prices from a yield perspective.” Market sentiment is cautious, and the core PCE price index, a favored inflation indicator by the Fed, is expected to remain moderate when released on Friday. Additionally, key US data this week includes the November ADP employment report on Wednesday. ( Jin10 )