.– Gold prices fell slightly in Asian trade on Tuesday, but were sitting on some gains from the prior session as signs of a cooling U.S. economy ramped up expectations of rate cuts and drove the dollar to two-month lows. 
But the yellow metal still remained well below record highs hit in May, with upcoming labor market data, due later in the week, set to provide more cues on the path of U.S. interest rates. 
fell 0.1% to $2,347.66 an ounce, while expiring in August fell 0.1% to $2,368.50 an ounce by 00:36 ET (04:36 GMT). 
Rate cut hopes grow on weak U.S. data, dollar sinks
Traders were seen pricing in a 52.1% chance for a 25 basis point rate cut in September, up from yesterday’s expectations of a 47% chance, the showed on Tuesday.
This shift in expectations came after data showed on Monday that U.S. manufacturing activity shrank for a second consecutive month in May.
The PMI data, which came just days after a soft reading, pushed up bets that the U.S. economy was cooling, which could herald softer inflation and give the Federal Reserve more confidence to begin cutting interest rates. 
This notion saw the sink to two-month lows on Monday. 
The Fed is set to and keep rates steady. But before that, key labor market data is due this week and is likely to factor into the central bank’s plans for rates.
Rate decisions by the and the are due this week, with both central banks set to begin cutting interest rates. 
Lower rates are expected to benefit gold and other precious metals, given that the opportunity cost of investing in the sector increases in a high-rate environment.
Other precious metals steadied on Tuesday after advancing on Monday. fell 0.1% to $1,023.50 an ounce, while steadied at $30.785 an ounce.
Copper prices mixed as soft PMIs bode poorly 
Among industrial metals, copper prices were a mixed bag on Tuesday as they steadied after tumbling from record highs over the past week.
Benchmark on the London Metal Exchange rose 0.5% to $10,197.50 a tonne, while one-month fell 0.4% to $4.6645 a pound.
Weak PMI data from the U.S. and China ramped up concerns over slowing manufacturing activity across the globe, which could spell weaker demand for the red metal.