Spot gold rose modestly on Tuesday but stayed below $4,200/oz, near early-August lows, after Monday’s selloff driven by U.S. Treasury yields rising to multi-decade highs and higher oil. Markets price a longer period of higher Fed rates, weighing on demand for non-yielding assets; the CME FedWatch tool shows a 72.5% chance of an October rate hike. Traders are watching U.S. consumer confidence and job-openings data due later Tuesday.

The U.S. Transportation Department finalized a major rollback of federal fuel-economy rules, setting a passenger car and light-truck fleet average of 34.9 mpg for the 2031 model year — well below the Biden administration's roughly 50 mpg target. The rule withdraws a policy that had compelled automakers to raise efficiency and expand battery-electric vehicle sales, weakening federal support for EV adoption; Transportation Secretary Duffy said the change is intended to lower new-car prices, and President Trump criticized the prior rules as an unaffordable EV mandate.

Japan's Nikkei 225 slid to 65,000 points, down 1.34% on the day.