FX.co ★ Gold Retreats from 6-Week High on Profit Taking

On Tuesday, gold prices softened to $4,210 per ounce as investors opted to secure profits after levels peaked during the past six weeks on Monday. This fluctuation occurs amid growing anticipation of an impending U.S. interest rate cut slated for next week. The market currently prices in an 88% likelihood of a 25 basis-point reduction at the Federal Reserve's forthcoming meeting, a sentiment bolstered by lackluster U.S. economic performance and dovish overtones from several Fed governors. Recent data indicated that the U.S. manufacturing sector contracted for a ninth consecutive month in November, thereby intensifying the pressure on the Federal Reserve to consider policy easing. Market participants are keenly awaiting insights from Fed Chair Jerome Powell’s address later today, hoping for further direction regarding the central bank’s stance on interest rates. Additionally, significant economic indicators such as the November ADP employment report and the postponed September PCE data, due later this week, are being closely monitored for further insights.