Gold prices declined in European trading on Monday, driven by active profit-taking from recent record highs, while U.S. 10-year Treasury yields rose again.
Investors are now focused on a series of key U.S. economic data releases, which could offer valuable insights into the Federal Reserve's interest rate decisions for November and December.
Gold Prices
Gold prices dropped 0.8% today to $2,724 an ounce, peaking at $2,747 during the session.
On Friday, prices increased by 0.45%, marking a second consecutive gain and nearing record highs of $2,758 after a brief pause.
Last week, gold rose by 1%, achieving a third straight weekly gain driven by safe-haven demand ahead of the U.S. presidential election and amid escalating geopolitical tensions.
U.S. Yields
U.S. 10-year Treasury yields climbed 1.2% on Monday, marking a second session of gains and reaching a three-month high at 4.292%, putting pressure on non-yielding assets.
These movements come as markets increasingly anticipate a more measured approach from the Federal Reserve in adjusting its policy stance.
U.S. Rates
According to the Fedwatch tool, there is currently a 95% probability of a 0.25% rate cut by the Fed in November, with a 5% chance of no rate changes.
Investors are awaiting key U.S. labor data, including reports on job openings, private sector employment, unemployment claims, and the critical payrolls report due Friday. Personal consumption data for September, a key inflation gauge for the Fed, is also expected on Friday.
U.S. Elections
With the U.S. presidential election approaching on November 5, market uncertainty has heightened, as recent polls suggest a tight race between Donald Trump and Kamala Harris.
SPDR Gold Trust
Holdings at the SPDR Gold Trust declined by 4.02 tons on Friday, bringing the total to 889.78 tons, the lowest since October 18.