Gold Rebounds Below $4,200 as Traders Await U.S. Economic Data

Spot gold edged higher Tuesday but remained below $4,200 an ounce as traders assessed elevated Treasury yields, rising oil prices and upcoming U.S. economic data.

The rebound followed a sharp selloff in precious metals on Monday after U.S. Treasury yields reached multi-decade highs and oil prices climbed. Gold remained near its lowest level since early August.

Higher-for-longer rate expectations weighed on demand for non-yielding assets, limiting the metal’s recovery. Traders currently expect a 72.5% probability of a Federal Reserve rate hike in October.

Markets are awaiting a series of U.S. economic releases later Tuesday, including consumer confidence and job-vacancies data. Those reports may shape expectations for the path of interest rates.