Gold Prices Fluctuate Amid Fed Speculation and Geopolitical Tensions

Gold prices fell by up to 2.1% as traders reacted to Donald Trump's nomination of Scott Bessent as Treasury Secretary and anticipated the Federal Reserve's upcoming interest rate decision. Bessent's nomination is seen as stabilizing for the US economy, potentially reducing gold's appeal as an inflation hedge. Despite a recent rally driven by geopolitical tensions, profit-taking and a strong US business activity report contributed to the decline. Investors are now focused on upcoming economic data that may influence the Fed's rate path.