Gold price retreats in the North American session, weighed down by rising US Treasury yields, traders booking profits, and news that US President Donald Trump might name Fed Governor Adriana Kugler's replacement toward the end of the year. The XAU/USD trades at $3,372, down 0.23%.

Bullion faltering to extend its rally, which extended for three days, is also attributed to traders booking profits, even though US President Donald Trump signed an executive order adding a 25% levy on India as the latter continues to purchase Russian Oil. India's new tariff, effective 21 days after August 7, would raise duties on some of its exports to as high as 50%.

In the meantime, US Treasury yields are climbing, with the 10-year at 4.241%, up three bps so far in the day, a headwind for XAU. Conversely, the US Dollar Index (DXY), which tracks the performance of the buck's value against a basket of six peers, is down 0.50% at 98.25.

Expectations that the Federal Reserve (Fed) will cut interest rates at the September meeting remain at around an 87% chance, according to the CME FedWatch Tool. The December 2025 fed funds rates contract shows that market participants expect 58 basis points (bps) of easing toward the end of the year.

A scarce economic docket left traders adrift to comments by Boston Fed President Susan Collins, San Francisco Fed Mary Daly and Governor Lisa Cook.

Source: Fxstreet