Gold dropped below $2,640 per ounce on Monday, ending a five-session rally, as investors took profits and shifted towards riskier assets following Donald Trump’s nomination of hedge fund manager Scott Bessent to lead the U.S. Treasury.
Gold dips below $2,640 per ounce
Bessent advocated for a gradual approach to trade restrictions and expressed a willingness to negotiate tariff levels with the incoming president. His focus will be on implementing Trump’s tax cut promises, reducing spending, and maintaining the dollar’s status as the global reserve currency. Additionally, reports that Israel may soon reach a ceasefire with Hezbollah helped boost investor sentiment. Meanwhile, markets are awaiting the release of the Fed’s November meeting minutes and PCE inflation data to gauge the future direction of U.S. interest rates. Currently, markets are pricing in a 56% chance of a 25bps rate cut in December, down from 62% last week. Last week, gold prices surged by 6%, driven by safe-haven demand amid escalating tensions in the Russia-Ukraine conflict.
