Market Analysis

Gold prices declined in early trading on Tuesday as investors continue to evaluate the potential for a Federal Reserve rate cut in September.

As of 00:08 EST (04:08 GMT), spot gold was down 0.24% at $2,425.55.

The metal had a robust performance last month, hitting a record high of $2,531.60 on August 20. However, attention is now shifting to the upcoming U.S. non-farm payroll report due on Friday.

The report is anticipated to significantly influence expectations for the Federal Reserve's interest rate decision.

August's labor market data is crucial in determining whether the Fed will implement a 50 basis point or a 25 basis point rate cut at its September meeting.

Traders have slightly revised their expectations, with the probability of a 25 basis point cut at 69%, while the likelihood of a more substantial 50 basis point reduction has decreased to 31%, according to the CME FedWatch tool.

Demand for physical gold in major Asian markets remains tepid, with new import quotas failing to boost Chinese demand as anticipated.

Paraphrasing text from "Investing" all rights reserved by the original author.