Gold falls on Trump’s choice of new Treasury Secretary

Gold declines by over $30 on Monday after the news that Donald Trump has chosen Scott Bessent as the new US Secretary of the Treasury. 

Bessent is a seasoned Wall Street professional and is viewed as a safe pick by markets, reducing haven flows to Gold.

Technically, XAU/USD pulls back after peaking and risks forming a bearish candlestick pattern on a daily close.  

Gold (XAU/USD) falls over one percent on Monday to trade in the $2,670s after markets let out a sigh of relief at the appointment of a “safe pair of hands” to take over from Janet Yellen as the next US Treasury Secretary. 

President-elect Donald Trump has chosen hedge fund manager Scott Bessent to be in charge of the US Treasury when he becomes President in January 2025. Gold is losing ground because of Bessent’s reputation as a cautious operator who is likely to curb some of President Trump’s more radical economic and trade policies. This has likely calmed markets and reduced safe-haven demand for the precious metal. 

Further anesthetizing markets are rumors that Israel and Hezbollah are close to reaching a ceasefire deal. Despite exchanging heavy fire over the weekend, the two enemies have also made “signs of progress in US-led ceasefire talks,” according to Reuters. Any breakthrough in talks would reduce geopolitical risk and safe-haven flows into Gold.