Gold prices fell in Asian markets on Tuesday. The reason was that US Treasury interest rates rose. Investors were cautious due to several important economic data and a major policy announcement by the US Federal Reserve.
The US 10-year Treasury yield was near its highest level in the past two weeks. Generally, buying gold is more beneficial when interest rates are cut, as the cost of holding gold decreases.
The November ADP employment report and the September PCE inflation report, which will be released this week, could have a big impact on the US Federal Reserve’s inflation decisions. This could also change expectations about future interest rate cuts. In addition, the political situation surrounding the US Federal Reserve also affected gold prices.
