Gold edges lower on rising US yields, still eyes weekly gains

• Gold declines but holds to weekly gains as mixed US economic data keeps rate cut expectations alive.
• Market braces for the Federal Reserve’s decision on December 18, with a 93% likelihood of a 25 bps cut anticipated.
• Upcoming US economic data and Fed Chair Powell’s commentary will be critical for future market direction.

Gold price fell for the second consecutive day as high US Treasury bond yields weighed on the yellow metal. Traders await the Federal Reserve’s (Fed) interest rate cut next week. The XAU/USD trades at $2,657, down 0.80%.

Despite posting losses, Bullion is up almost 1% in the week following a tranche of US economic data releases. US inflation data on the consumer and producer sides was mixed, but the latest Initial Jobless Claims report gave the green light to investors for pricing in the Fed’s December rate cut.