(Bloomberg) -- Gold retreated as investors took profits after another record-breaking session, with prices still supported by growing optimism over the timing of the next Federal Reserve rate cut and increasing haven demand.

Bullion slipped by as much as 2.1%, and is trading about $60 away from Monday’s fresh all-time high of $2,956.19 an ounce.

Traders booked some profits after the latest data showed US consumer confidence fell this month by the most since August 2021 on concerns about the outlook for the broader economy. The print also added to evidence that uncertainty over the Trump administration’s policies is weighing on households.

Swap markets now price in a quarter-point cut by the Fed in July. That’s providing support for bullion prices as lower rates are positive for the precious metal, which doesn’t pay interest. Haven demand driven by ongoing uncertainty over Trump’s trade and geopolitical agendas is also supportive of bullion prices.

Looking ahead, investors will be analyzing Friday’s core personal consumption expenditures price index, the Fed’s preferred inflation gauge, for clues about the central bank’s monetary policy trajectory.

Spot gold was down 2.0% at $2,893.00 an ounce at 11:33 a.m. in New York. The Bloomberg Dollar Spot Index was down 0.1%. Silver, palladium and platinum all fell.

--With assistance from Preeti Soni and Sybilla Gross.