Gold futures fell as the dollar rose due to weakening hopes for interest rate cuts

Due to rising U.S. Treasury yields and a strong dollar, gold futures retreated. Futures fell 0.7% to $2,662.50 per ounce.

Experts say the market is increasingly focused on the possibility of the Federal Reserve maintaining high interest rates for a longer period.

The report indicated that this dynamic supported the dollar and yields while suppressing the appeal of the non-yielding precious metal.

The prospect of a trade war sparked by the incoming Trump administration could reignite inflation, coupled with strong performance in the U.S. economy, intensifying confidence that the central bank will slow the pace of interest rate cuts.

Upcoming U.S. economic data may provide further insights into potential moves by the Federal Reserve.

Strong economic and labor market data could bolster expectations for fewer rate cuts.