Gold saw a minor drop in early Asian trading on Tuesday, after hitting a six-week peak in the prior session. Investors took profits during this movement, awaiting remarks from the Federal Reserve Chair and key economic data that might shed light on possible interest rate cuts. Spot gold decreased by 0.2% to $4,222.93 per ounce, as of 0024, following a peak not seen since October 21 on Monday. Gold futures in the U.S. for December delivery fell by 0.4%, closing at $4,256.30 per ounce.

Reports shows that U.S. rate futures suggest an 88% likelihood of a rate cut in December. On Sunday, White House economic adviser Kevin Hassett expressed his willingness to take on the role of the next Fed chairman if chosen. Treasury Secretary Scott Bessent indicated that a new chair could be appointed before Christmas. Hassett supports lower rates, much like U.S. President Donald Trump, and gold, known for not generating interest, often shows robust performance in settings marked by low interest rates.

Investors are focusing on important data this week, particularly the November ADP employment figures set for Wednesday and the delayed September Personal Consumption Expenditures Index, which is the Federal Reserve’s preferred measure of inflation, scheduled for release on Friday. Comments from Fed Chair Jerome Powell later today are expected to offer further clarity on policy direction. U.S. stocks saw a minor drop on Monday, affected by an increase in Treasury yields and economic data showing that tariffs were still impacting the manufacturing sector, as investors looked ahead to the Federal Reserve’s policy announcement scheduled for the following week.

SPDR Gold Trust, known as the largest gold-backed exchange-traded fund in the world, announced a rise in its holdings by 0.44%, totaling 1,050.01 metric tons on Monday, an increase from 1,045.43 tons on Friday. Elsewhere, silver fell by 1% to $57.40 per ounce, platinum dropped by 0.3% to $1,652.05, while palladium saw a slight rise of 0.22% to $1,427.22.