WASHINGTON (dpa-AFX) - Gold edged down slightly on Tuesday after rising nearly 2 percent in the prior session on growing expectations that the Federal Reserve will cut interest rates further this year.
Spot gold slipped 0.3 percent to $4,123.30 an ounce, after having reached its highest level since November 14 earlier. U.S. gold futures were down 0.3 percent at $4,159.
Recent dovish comments from Federal Reserve officials reinforced hopes the Fed will cut interest rates next month.
New York Fed President John Williams said on Friday that there was room to lower rates 'in the near term.'
In an interview with Fox Business, Fed Governor Christopher Waller said the labor market is soft and it's continuing to weaken, warranting another quarter point cut to interest rates in December.
San Francisco Fed President Mary Daly told the Wall Street Journal that she supports lowering rates due to labor market concerns.
CME Group's FedWatch Tool currently indicates an 84.9 percent chance the Fed will cut rates by a quarter point next month, up sharply from 42.4 percent a week ago.
The dollar held steady ahead of the release of key U.S. economic data later in the day, including readings on retail sales, pending home sales, producer prices and consumer confidence.
Ahead of Thanksgiving and Black Friday, these reports may provide valuable insights into inflation pressures, consumer spending patterns and overall economic sentiment in the world's largest economy.
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