Gold falls more than 1% at settlement amid profit-taking

Gold prices fell at settlement as investors took profits

Gold prices fell at Tuesday’s settlement as investors took profits after the metal hit a six-week high at the previous session’s close, driven by expectations of a Federal Reserve rate cut.

February gold futures dropped 1.26%, or $54, to $4,220.8 an ounce.

Peter Grant, chief metals strategist at Zaner Metals, told Reuters that the move in the gold market appears to be “just a little bit of profit-taking.”

He added that investors’ main focus recently has been expectations of Fed interest-rate cuts, which remain largely intact.

CME FedWatch data show an 89% probability of a rate cut at the Fed’s meeting next week, up from 63% a month ago.

Investors are awaiting the ADP private-sector employment report due Wednesday, along with Friday’s reading of the core Personal Consumption Expenditures (PCE) index, the Fed’s preferred inflation gauge.