Spot gold shed 1.1% to $4,186.89 per ounce

Gold prices dropped more than 1% on Tuesday as investors took profits following a six-week high in the previous session.

Spot gold shed 1.1% to $4,186.89 per ounce by 1843 GMT.

It’s probably just a little bit of profit taking. The market’s focus of late has been rate cut expectations and those remain pretty steady, said Peter Grant, vice president and senior metals strategist at Zaner Metals.

We are in a continuation pattern that will eventually lead to an upside breakout and I still like $5,000 gold early in the new year, he added.

Recent data pointing to a gradual cooling of the U.S. economy, along with dovish signals from central bank policymakers, has bolstered market expectations for a 25-basis-point rate cut at the bank’s meeting next week, with traders pricing in an 89% chance of the move.

Investors are also eyeing U.S.’ November ADP employment report on Wednesday and the delayed September Personal Consumption Expenditures (PCE) Index, due Friday, which is the central bank’s preferred inflation gauge.

Central banks across the world bought 53 tons of gold in October, up 36% month-on-month and the largest monthly net demand since the start of 2025, according to the World Gold Council.

Silver dropped from its record high of $58.83 hit on Monday, declining 0.1% to $57.90 per ounce. It has gained more than 100% year-to-date.

There were no new reasons for the recent price jump in silver. However, the known reasons still apply, namely tight supply, which is reflected in low inventories on the Shanghai exchanges, Commerzbank said in a note, adding it expects a further, albeit moderate, price rise to $59 in the coming year.