The prices of gold they fall 1% this Monday, as investorss took profits after a five-session rally up to a maximum of three weeks, while the fund manager’s announcement Scott Bessent as new Treasury Secretary from the United States moderated safe haven buying. Along the same lines, the dollar gives way after a strong advance, since the election of the future Treasury secretary reassured the bond market about fiscal discipline, putting downward pressure on bond yields and cutting part of the currency’s advantage .
How gold operates this Monday, November 25
He Spot gold falls 1.06% to $2,707.90 per ounceafter having lost 2% earlier in the day. US gold futures fell 1.4% to $2,674.90.
In the early stages of the Asian session, gold had reached its highest level since November 6, after recording its biggest weekly rise in almost two years on Friday.
The two factors weighing on gold include profit taking after last week’s solid rallyand the nomination of Scott Bessent as next US Treasury Secretary, as some market participants see it as less negative for a trade war, said UBS analyst Giovanni Staunovo.
Gold is traditionally considered a safe investment in times of economic and political risks, while some strategists believe Bessent’s nomination was a relief, as he understands the markets and his appointment could reduce the possibility of severe tariffs on US trading partners.
Among other precious metals, spot silver fell 1.7% to $30.78 an ounce, platinum fell 1.1% to $952.60 and palladium lost 0.4% to $1,005.25. .
How the dollar operates in the world this Monday, November 25
He Return on 10-year notes declined to 4.343% from 4.412% on Friday, as President-elect Donald Trump’s selection of fund manager Scott Bessent was welcomed by the debt market as an old acquaintance of Wall Street and a fiscal conservative.
However, Bessent has also openly favored a strong dollar and supported tariffs, suggesting any pullback in the currency could be fleeting.
He dollar has been rising for eight consecutive weekswith many technical indicators overbought on bets that Trump’s policies will stoke inflation and further support the greenback.
“Pricing on several US assets was pushed quite aggressively in one direction for three weeks,” said BNY’s Geoff Yu. “Markets probably need to take a breather when it comes to their dollar positions.”
The dollar index was down 0.8%, at 107.22, from a two-year high of 108.09 hit on Friday. The US currency fell 0.2% against the yen, to 154.52 units, moving away from its recent maximum of 156.76. The euro gained 0.3% to $1.0452, far from the two-year low hit on Friday at $1.0332. Sterling rose 0.2% to $1.2553, after hitting a six-week low of $1.2484 on Friday.
Focus on the Fed
Market participants are also awaiting minutes from the Federal Reserve’s November FOMC meeting, GDP data (first revision) and core CPI numbers, all expected this week. week.
“Markets generally expect the Federal Reserve to cut rates by 25 basis points at its next meeting on December 18, although traders have reduced their bets in recent days”said Frank Watson, market analyst at Kinesis Money, in a note.
Traders currently see a 56% chance of another 25 basis point rate cut in December, according to CME’s Fedwatch tool.
Source: Ambito
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