Gold
Gold prices edged lower in early Tuesday trading, extending the negative momentum that led to a 3% drop on Monday. The precious metal remains under pressure, with $2,600 emerging as a critical support level. The primary driver of these losses is the renewed risk appetite in financial markets. The nomination of Scott Bessent, viewed as a balanced choice for Treasury Secretary, has eased fears that a second Trump administration's tariff-heavy policies could reignite inflation and stifle economic growth. Additionally, reports of a potential ceasefire agreement between Israel and Hezbollah have helped calm geopolitical tensions, further reducing demand for haven assets like gold. Later today, the release of the latest FOMC minutes could provide additional direction. Dovish signals from the Federal Reserve may support gold prices, while indications of a potential pause in rate cuts next month could create additional headwinds for bullion.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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