Gold Daily | Gold Stabilizes Below $2,700 Amid Profit-Taking and Scott Bessent's Nomination as Treasury Secretary

【Latest Gold Price and Recent Trends】

Gold prices have stabilized below $2,700, following a 6% rise last week due to escalating Russia-Ukraine tensions boosting safe-haven demand. The price recently fell to around $2,668 amid profit-taking and the nomination of Scott Bessent as the U.S. Treasury Secretary.

【Technical Analysis】

Gold is currently testing a strong support area near $2,643, aligned with the 38.2% Fibonacci retracement level. A rebound could target resistance at $2,684, while a break below might expose the $2,649 level. On the 1-hour chart, recent price consolidation suggests limited downside potential in the near term.

【Market Sentiment and Economic Background】

The nomination of Scott Bessent has calmed market uncertainties, leading to a decrease in U.S. Treasury yields and pressure on gold prices. Upcoming data releases, including the Fed’s meeting minutes and PCE data, could influence gold's future direction. The expectation for a December rate cut has decreased to 55%.

【Analyst Opinions】

Allegiance Gold's COO, Alex Ebkarian, sees potential for gold to test $2,750 by mid-December, supported by strong safe-haven demand amid geopolitical tensions. Meanwhile, IG strategist Yeap Jun Rong notes that the end of a five-day rally was due to profit-taking and Bessent's nomination, indicating reduced trade uncertainty. FXStreet analysts indicate geopolitical tension relief may cause a significant downward correction in gold prices.