Gold Sheds 2% on Profit Taking, US Treasury Secretary News
Gold prices declined as much as 2% on Monday as investors booked profits following a five-session rally to a three-week high, while the announcement of fund manager Scott Bessent as the new U.S. Treasury Secretary tempered safe-haven buying.
Spot gold was down 1.5% at $2,673.30 per ounce as of 0943 GMT, declining 2% earlier in the session. U.S. gold futures shed 1.4% to $2,674.90.
Bullion had hit its highest since Nov. 6 in early Asia trade after posting its best weekly gain in nearly two years on Friday.
The two factors weighing on gold include profit taking after the solid rally last week, and the nomination of Scott Bessent as the next U.S. Treasury secretary with some market participants seeing him as less negative for a trade war, said UBS analyst Giovanni Staunovo.
Gold is traditionally seen as a safe investment during economic and political risks, while some strategists believe that Bessent's nomination was a relief as he understands markets and his appointment could reduce the chance of severe tariffs on U.S. trade partners.
Market participants are also watching out for the Federal Reserve’s November FOMC meeting minutes, GDP data (first revision), and core PCE figures, all due this week.
Traders currently see a 56% chance of another 25 basis points rate cut in December, according to the CME Fedwatch tool,.
Spot silver fell 1.7% to $30.78 per ounce, platinum was down 1.1% to $952.60 and palladium slipped 0.4% to $1,005.25.
Source : Reuters
