Aug 27 - Gold prices fell on Tuesday, weighed down by higher U.S. bond yields, as markets await inflation data that could shed light on the scale of an expected interest rate cut from the Federal Reserve next month.
The benchmark U.S. 10-year yields rose, making the non-yielding bullion less attractive for overseas buyers. Traders see a 65.5% chance of a 25-basis-point rate cut in September and about a 34.5% probability of a bigger 50-bp reduction, according to the CME FedWatch tool.
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