TechFlow, Dec 2 — Gold prices continued to decline on Tuesday, while silver retreated from the record high reached yesterday, according to Jinshi Data.
"We are seeing some traders taking profits after gold rebounded from $4,000 to $4,250 over the past two weeks," said Carlo Alberto De Casa, external analyst at Swissquote Bank.
Data released Monday showed that U.S. manufacturing activity contracted for the ninth consecutive month in November. Investors are now focusing on Wednesday's ADP employment report for November and the delayed release of the September PCE index, seeking clues on whether the Federal Reserve will cut rates at its meeting next week. Meanwhile, markets await President Trump's announcement on the new Federal Reserve chair nominee. According to reports, Kevin Hassett, director of the White House National Economic Council, has emerged as the leading candidate. Hassett, like Trump, favors lower interest rates.
De Casa expects "gold prices to trade sideways between $4,000 and $4,400 over the coming weeks." He added that a rate cut by the Fed could open room for further gains in gold prices.
