Gold Retreats After Rally as Trump’s Treasury Pick Reshapes Market Outlook
Gold prices took a step back today after a recent rally, as investors decided to lock in profits ahead of some key U.S. economic data releases. The Federal Reserve’s November FOMC meeting minutes, GDP numbers, and core PCE data are all on the horizon, leading to a cautious approach among market participants.
The recent appointment of Scott Bessent as Treasury Secretary by Donald Trump is also impacting the market sentiment. Bessent’s appointment is seen as a move that could bring stability to the U.S. economy and financial markets. While Bessent supports Trump’s protectionist policies and tax cuts, there is an expectation that he will help moderate the impact of tariffs and control inflation through reduced government spending.
Last week, gold saw a strong rally fueled by the Russia-Ukraine conflict. The risk of further escalation in geopolitical tensions remains high, which could continue to influence market sentiment and support gold prices in the medium to long term. Additionally, Trump’s new trade tariffs and the potential for a trade war could unsettle global trade, leading investors to seek gold as a safe-haven asset.
While short-term volatility may persist, there are strong underlying factors suggesting that interest in gold remains sustained, which could continue to support upward momentum in gold prices in the future.
