- Gold’s sharp drop followed reports of a potential ceasefire between Israel and Hezbollah, reducing geopolitical risk and safe-haven demand.
- The market’s response to Scott Bessent’s Treasury Secretary appointment added to bearish sentiment, as investors anticipate a moderated approach to Trump’s tariffs.
Gold (XAU/USD) plunged during Monday’s US session, dropping nearly 3.5% from its recent peak following reports from Axios that Israel and Hezbollah may have agreed to a ceasefire.
Gold has fallen below key technical levels, trading under its 200-, 100-, and 50-day Simple Moving Averages after recently peaking around $2,720.
Possibly adding to the downward pressure is President-elect Donald Trump’s announcement of Scott Bessent, as the new Treasury Secretary. While Bessent is seen supporting Trump’s protectionist and tax-cutting policies, investors expect his appointment may temper the impact of proposed tariffs.
