Gold Retreats After Rally as Trump’s Treasury Pick Reshapes Market Outlook
Today, gold futures experienced a slight dip as investors opted for profit-taking strategies ahead of crucial U.S. economic data releases. These include the Federal Reserve’s November FOMC meeting minutes, GDP numbers, and core PCE data. The market is also digesting the news of Scott Bessent’s appointment as Treasury Secretary by Donald Trump, which is seen as potentially stabilizing for the U.S. economy and financial markets. Bessent’s alignment with Trump’s protectionist policies and tax cuts is noted, with expectations that he may help moderate the impact of tariffs and control inflation through reduced government spending.
This pullback follows a robust rally last week driven by the Russia-Ukraine conflict. With the risk of further escalation remaining high, geopolitical tensions are expected to keep influencing market sentiment, providing support for gold prices in the medium to long term. In addition, concerns over Trump’s trade tariffs and the possibility of a trade war could disrupt global trade, leading investors to seek gold as a safe-haven asset. Although short-term volatility may persist, the underlying factors suggest that enduring interest in gold will likely continue to bolster its prices upwards.
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