Investing.com – Global gold prices fell sharply during the trading sessions on Monday, driven by profit-taking activity after a five-session rally, as well as pressures from the announcement of the departure of investment fund manager Scott Bessent name as the next US Treasury Secretary in the Trump administration.
Spot prices had hit their highest levels since November 6 earlier in the session.
Markets strategist at IG, Yip Jun Rong, said, “Gold’s rally has stalled after five days of gains due to speculation and Trump’s choice of Scott Bessent as US Treasury Secretary, which indicates a reduction in use tariffs and easing trade uncertainty.”
US President Donald Trump had proposed the idea of imposing tariffs of 60% on Chinese goods and a minimum of 10% on other imports.
Gold is considered a safe investment in times of economic and political uncertainty.
This week, investors are also waiting for the publication of the numbers (the first review) and (PCE).
According to , traders currently see a 56% probability of another 25 basis point rate cut in December, compared to 62% last week.
“Less accommodative monetary policy signals and the potential for an inflation surprise could support the decision to hold interest rates in December, reducing expectations of a rate cut and potentially weighing on gold prices,” said Yip Jun Rong.
High interest rates tend to make precious metals like gold less attractive because they generate no yield.
Last week, some Federal Reserve policymakers expressed concern that progress in controlling inflation had stalled, calling for caution, while others stressed the need for further rate cuts.
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Gold at settlement Friday
Gold prices rose during trading on Friday, with an increase in geopolitical tensions in Europe, which strengthened the appeal of the yellow metal as a safe haven, and pushed it to post strong weekly gains.
When trades settled, prices for December delivery rose 1.4%, or $37.3, at $2,712.2 an ounce, ending the yellow metal’s 3-week losing streak, achieving gains weekly of 5.55%.
The weekly gains are the biggest in nearly two years, when a wave of banking crises hit global markets and fueled demand for safer assets in March 2023.
Gold and dollars now
Spot fell 1.7% to $2,666 an ounce.
While gold futures fell 1.6% to register $2,693.
On the other hand, US contracts fell 0.58% to 106.89 points.
other metals
The spot price fell 1.7% to reach $30.77 an ounce, platinum fell 0.83% to reach $955.25, and fell 1% to register $999.15.
2024-11-25 07:46:00
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