Gold eases due to uptick in dollar

Spot gold was down 0.2% at $3,681.23 per ounce after reaching a record high of $3,702.95 on Tuesday

Gold eased on Wednesday due to a slight uptick in the dollar and profit-taking after bullion hit a record high in the previous session.

Spot gold was down 0.2% at $3,681.23 per ounce, as of 0256 GMT, after reaching a record high of $3,702.95 on Tuesday.

Gold’s ascent to $3700 was aided by the decline in the USD and by bets that the Fed may signal that follow-up rate cuts are likely to arrive before year-end, KCM Trade Chief Market Analyst Tim Waterer said.

Profit taking around the $3,700 level saw the precious metal drop back below this mark. But should the Fed adopt a particularly dovish tone in their meeting, gold could be making another move higher, he added.

The U.S. dollar edged up 0.1% after dropping to a more than two-month low on Tuesday. Meanwhile, the benchmark U.S. 10-year Treasury yields were hovering near a more than five-month low.

Data on Tuesday showed U.S. retail sales rose more than expected in August, but a weakening labour market and rising prices because of tariffs pose a downside risk to continued strength in spending.

The U.S. central bank is expected to deliver a quarter-percentage-point rate cut later in the day to support the labour market. Remarks from bank Chair Jerome Powell will be closely watched to gauge the pace of further easing.

U.S. President Donald Trump has called for Powell to enact a “bigger” rate cut.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.32% to 979.95 metric tons on Tuesday, from 976.80 tons on Monday.