Gold prices (XAU/USD) fell during the North American session on Monday (11/25) as news of a ceasefire between Lebanon and Israel spread, dampening appetite for riskier assets. This, along with the appointment of Scott Bessent as Treasury Secretary for the Trump administration, weighed on the yellow metal. XAU/USD is trading at $2,620, down more than 3%.
The increased risk appetite is driving the movement in Gold prices. The non-yielding metal has fallen below its 50-day Simple Moving Average (SMA) of $2,664, opening the door for further downside.
Market participants welcomed Bessent's appointment. UBS Commodity Analyst Giovanni Staunovo commented, "Some market participants see him as less negative about the trade war, given his comments on a gradual approach to implementing tariffs." According to Joaquin Monfort, an analyst at FX Street, Bessent advocates a "three-three" policy. The policy suggests that he will try to reduce the US deficit by 3% of the annual Gross Domestic Product (GDP), achieve an annual GDP growth rate of 3%, and increase US Crude Oil production by 3 million barrels per day.
A recent report revealed by Axios revealed that Israel and Lebanon are close to agreeing on terms to end the Israel-Hezbollah conflict, which has lifted Gold prices to record highs.
Bullion traders are also eyeing the release of Consumer Confidence data, the latest Federal Open Market Committee (FOMC) Meeting Minutes, Initial Jobless Claims, and the Fed's preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index.
Source: FXStreet
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