Gold falls as traders weigh chances of U.S. rate cut

Gold prices fell slightly on Wednesday, as the dollar and U.S. Treasury yields rose, while traders awaited further clues to predict the size of the Federal Reserve’s September interest rate cut.

Spot gold was down 0.2 percent at $2,385.60 an ounce by 0310 GMT. U.S. gold futures were down 0.3 percent at $2,425.30.

“The rebound in U.S. Treasury yields and the stronger dollar are translating into some downward pressure on gold prices this morning,” said IG analyst Yip Rong.

Gold’s decline could be limited by ongoing tensions in the Middle East and global recession fears, he added, as markets await more economic data to clarify the situation in the United States.