Gold prices declined in European trading on Tuesday for the first time in three days, pulling back from record highs due to profit-taking, while yields on the US 10-year Treasury rebounded.
This followed optimistic comments from a Federal Reserve official, which reduced the likelihood of a 0.5% rate cut in September.
Prices:
Gold prices decreased by 0.6% today to $2,503 an ounce, after reaching a session high of $2,518.
On Monday, gold prices increased by 0.2%, marking a second consecutive gain and nearing record highs of $2,531.
US Yields:
US 10-year Treasury yields rose by 0.55% today, marking the second consecutive increase, putting pressure on non-yielding assets.
Fed Remarks: San Francisco Fed President Mary Daly indicated that a 25 basis point reduction in borrowing costs is the most likely scenario for next month.
US Rates:
According to the FedWatch Tool, the probability of a 0.5% rate cut by the Fed in September has dropped to 28%, while the likelihood of a 0.25% cut has increased to 72%.
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