Gold Slips for the First Time in Nine Sessions Despite Rate-Cut Hopes

09:16 AM EST, 12/02/2025 (MT Newswires) -- Gold prices weakened for the first time in nine sessions early on Tuesday as the metal continues to run under its Oct. 20 record high despite the prospect for an interest-rate cut from the Federal Reserve next week.

Gold for February delivery was last seen down US$38.90 to US$4,235.90 per ounce.

The price of the metal a day earlier rose to the highest since the record close of US$4,359.40 last month, supported by expectations the Fed's policy committee will end its two-day meeting on Dec. 10 with a 25 basis point cut to interest rates. The CME FedWatch tool now sees an 87.4% probability for a rate cut, up 63% a month ago. Lower interest rates cut the carrying cost of owning gold.

Still, despite the rate-cut hopes, gold has lost the momentum buying that pushed it to the record high.

"Gold, which has behaved more like a follower than a leader in the latest upswing, has turned lower after failing to attract fresh demand," Saxo Bank noted.

The dollar was steady, with the ICE dollar index last seen up 0.01 points to 99.43. Treasury yields were mixed, with the yield on the U.S. two-year note down 1.2 basis points to 3.537%, while the 10-year note was paying 4.117%, up 2.5 points.

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