Gold Prices Tumble Amid Risk-On Sentiment and Ceasefire Talks

Gold prices dropped 3% as President-elect Donald Trump appointed Scott Bessent as Treasury Secretary and reports of a potential Israel-Hezbollah ceasefire emerged, reducing the metal's safe-haven appeal. The risk-on sentiment led to a selloff, with gold futures trading at $2,628.5 per ounce. The market also reacted to a stronger dollar and changing expectations for U.S. interest rates, with the probability of a December rate cut decreasing. Analysts suggest gold prices may stabilize around $2,500 in the short term, with potential volatility as the Trump administration transitions.