Gold Prices Retreat After Monday’s Rally

Investing.com – Gold prices edged lower in early trade on Tuesday, as investors sold the yellow metal to lock in profits following the nearly one percent gain in the previous session.

Comex slipped around $4.00, or 0.3%, to $1,277.33 a troy ounce by 3:45AM ET (0845GMT).

The yellow metal , the biggest percentage gain in about six weeks, as safe-haven buying picked up on concerns over corruption arrests that targeted royal family members and ministers in Saudi Arabia.

The included a wave of arrests of Saudi Arabian princes, businessmen and government ministers in what has been billed as an anticorruption crackdown but is seen by some as a consolidation of power by Crown Prince Mohammad bin Salman.

Meanwhile, will also likely be at the back of investors’ minds Tuesday, as markets look for any new developments.

Tax negotiators in the House of Representatives will seek to overcome their differences this week and work on a plan, aiming for their self-imposed deadline of passage this month.

Some traders believe tax reforms could bolster growth, adding pressure on the Federal Reserve to raise interest rates, known as the “Trumpflation” trade.

The U.S. central bank is scheduled to hold its final policy meeting of the year on Dec. 12-13, with interest rate futures pricing in a 100% chance of a rate hike at that meeting, according to Investing.com’s .

Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Elsewhere on the Comex, lost 18.9 cents, or 1%, to $17.04 a troy ounce. Among other precious metals, shed 0.6% to $928.95, while slumped 0.3% to $992.12 an ounce.

Meanwhile, declined 2.0 cents, or 0.7%, to $3.137 a pound.

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