PRECIOUS-Gold prices ease on firmer yields, US data in focus

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Gold touched a six-week peak on Monday

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88% chance of a rate cut in December - CME FedWatch

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Benchmark U.S. 10-year treasury yields at near two-week peak

(Updates with comments for Asia session trading)

By Ishaan Arora

Dec 2 (Reuters) - Gold eased in early trading on Tuesday, after it touched a six-week high in the previous session, as rising U.S. Treasury yields and profit-taking weighed on sentiment ahead of U.S. economic data likely to guide the Federal Reserve's policy path.

Spot gold fell 0.4% to $4,215.48 per ounce, as of 0228 GMT, after hitting its highest level since October 21 on Monday.

U.S. gold futures for December delivery were down 0.6% at $4,247.10 per ounce.

Benchmark 10-year U.S. Treasury yields hovered close to a two-week high touched in the previous session, reducing the appeal of non-yielding bullion.

Markets are acting cautiously because Fed Chair Jerome Powell is not expected to sound as dovish as some of his Fed colleagues, and core Personal Consumption Expenditures (PCE) price index - the Fed's preferred measure of inflation - on Friday is expected to remain fairly benign, Waterer said.

"Gold is having a soft performance today, but the fundamental picture has not changed - a picture which includes anticipated U.S. rate cuts, which should be supportive of gold from a yield point of view," said KCM Trade Chief Market Analyst Tim Waterer.

Powell, in remarks prepared for an address at Stanford University late Monday, did not comment on the economy or monetary policy.

Investors are watching key U.S. data this week, including Wednesday's November ADP employment report and Friday's delayed September Personal Consumption Expenditures Index.

Traders are pricing in an 88% chance of a Fed rate cut in December, according to CME's FedWatch tool.

White House adviser Kevin Hassett said he is willing to serve as Fed chair, as Treasury Secretary Scott Bessent flagged a possible pre-Christmas nomination. Hassett, like President Donald Trump, wants lower rates.

Lower interest rates typically benefit non-yielding gold.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.44% to 1,050.01 metric tons on Monday from 1,045.43 tons on Friday.

Silver fell 1.9% to $56.88 per ounce, platinum rose 0.1% to $1,659.23, while palladium gained 0.2% to $1,427.62. (Reporting by Ishaan Arora in Bengaluru; Editing by Rashmi Aich)