The post Gold price slumps as risk-aversion wanes, amid Middle East ceasefire appeared on BitcoinEthereumNews.com.

Gold sees significant sell-off on developments in the Middle East. Markets viewed Scott Bessent’s appointment as Treasury Secretary positively. Possible ceasefire between Israel and Lebanon keeps Gold heavy. Gold price (XAU/USD) plummeted during Monday’s North American session as news from a ceasefire between Lebanon and Israel crossed the wires, exacerbating appetite for riskier assets. This, along with the nomination of Scott Bessent as the Treasury Secretary for Trump’s administration, weighed on the yellow metal. The XAU/USD trades at $2,620, down over 3%. Improvement in risk appetite is the driver of Gold’s price action. The non-yielding metal has fallen below the 50-day Simple Moving Average (SMA) of $2,664, opening the door for further downside. Market players cheered Bessent’s appointment. UBS Commodity Analyst Giovanni Staunovo commented, “Some market participants see him as less negative about a trade war, considering his comments on a phased approach for implementing tariffs.” According to Joaquin Monfort, an analyst at FX Street, Bessent advocates for the “three-threes” policy. The policy suggests he would try to reduce the US deficit by 3% of annual Gross Domestic Product (GDP), achieve a 3% annual GDP rate, and raise US Crude Oil production by 3 million bpd. A recent report revealed by Axios revealed that Israel and Lebanon are close to agreeing to terms to end the Israel-Hezbollah conflict, which lifted Gold prices to record highs. Bullion traders are also eyeing the release of the 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. Daily digest market movers: Gold plummets to five-day low beneath $2,650 Gold prices recovered as US real yields collapsed 14 basis points to 1.925% from 2.068%. The US Dollar Index tumbles over 0.64%, down to 106.80. Traders trimmed…

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Filed under: News - @ November 25, 2024 11:23 pm