Gold Trading Lower Ahead of Inflation Data as Treasury Yields Rise

09:29 AM EST, 12/04/2025 (MT Newswires) -- Gold traded lower early on Thursday as treasury yields rose ahead of key U.S. inflation data coming Friday and next week's interest-rate decision from the Federal Reserve.

Gold for February delivery was last seen down US$9.00 to US$4,223.50 per ounce.

The price of the metal has climbed 6.9% over the past month, supported by expectations the Federal Reserve's policy committee will end its two-day meeting on Dec. 10 with a 25 basis point cut to U.S. interest rates.

The final data point for the committee's decision will come tomorrow, with the release of the September Personal Consumption Expenditure (PCE) Index, the Fed's preferred inflation measure. The report, which was delayed by the U.S. government shutdown, is expected to show inflation was steady at a 2.9% pace in the month, unchanged from August, according to Marketwatch.

"Through year-end, gold prices should remain buoyant, and we remain of the view that new and growing investor allocations are strategic and sticky, as are the central bank purchases that we believe will continue into next year. Prices overall should remain supported by economic data, ongoing uncertainty, and the need to diversify," Christopher Louney, a commodities strategist at RBC Capital Markets, wrote.

The dollar was steady early, with the ICE dollar index last seen up 0.02 points to 98.88. Treasury yields rose, with the U.S. two-year note last seen paying 3.523%, up 2.5 basis points, while the yield on the 10-year note was up 2.1 points to 4.088%

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