PRECIOUS-Gold prices ease on firmer Treasury yields, US data in focus

By Ishaan Arora

Dec 2 (Reuters) - Gold eased on Tuesday after touching a six-week high in the previous session, as rising U.S. Treasury yields and profit-taking weighed on prices, while investors awaited U.S. economic data to gauge the Federal Reserve's policy path.

Spot gold XAU= fell 0.3% to $4,218.71 per ounce by 0621 GMT.

U.S. gold futures GCcv1 for December delivery were down 0.6% at $4,250.70 per ounce.

Benchmark 10-year U.S. Treasury yields US10YT=RR hovered close to a two-week high touched in the previous session, reducing the appeal of non-yielding bullion. US/

"Gold is having a soft performance today, but the fundamental picture has not changed - a picture which includes anticipated U.S. rate cuts, which should be supportive of gold from a yield point of view," said KCM Trade Chief Market Analyst Tim Waterer.

Markets are acting cautiously as Federal Reserve Chair Jerome Powell is not expected to sound as dovish as some of his colleagues, and the core Personal Consumption Expenditures (PCE) price index - the Fed's preferred measure of inflation - on Friday is expected to remain fairly benign, Waterer said.

Powell, in an address at Stanford University late on Monday, did not comment on the economy or monetary policy.

Key U.S. data this week include Wednesday's November ADP employment report and Friday's delayed September PCE Index.

Traders are pricing in an 88% chance of a December Fed rate cut, per CME's FedWatch tool. FEDWATCH

Meanwhile, White House economic adviser Kevin Hassett said he is willing to serve as Fed chair, as Treasury Secretary Scott Bessent flagged a possible pre-Christmas nomination. Hassett, like President Donald Trump, wants lower rates.

Lower interest rates typically benefit non-yielding gold.

SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.44% to 1,050.01 metric tons on Monday from 1,045.43 tons on Friday.

Silver XAG= fell 1.3% to $57.24 per ounce, platinum XPT= slipped 0.9% to $1,643.10, and palladium XPD= was down 0.4% at $1,419.50.