On Monday, the Tokyo market started with the dollar weakening. Reports suggested that Scott Bessent, a well-known investor who emphasizes fiscal discipline, might be nominated as the next U.S. Treasury Secretary. This eased excessive fears about the rapid growth of the fiscal deficit. Gold prices initially rose to around $2,720.
However, after Bessent stated plans to implement various tax cuts and emphasized maintaining the U.S. dollar’s position as the global reserve currency, the dollar rebounded. As a result, gold fell to around $2,657.
Later, news of a potential ceasefire agreement between Israel and Lebanon boosted risk-on sentiment, leading gold prices to drop further to the lower $2,600 range. Ultimately, gold, which had rebounded in a V-shape last week, started declining again.
The ceasefire with Israel is not yet finalized. If an agreement is reached, gold prices may face more selling pressure. However, with Thanksgiving this week, market liquidity is expected to decrease, leading to volatile movements. It is important to watch out for short-term rebounds.
Gold-Dollar Expected Range: $2,680–$2,605
Note: The above information does not guarantee profits. Please make your own decisions when trading.