According to Kitco News, at noon on November 25 local time, the world gold price for December delivery in the US decreased by 85.50 USD to 2,626.80 USD/ounce. The price decreased due to better investor risk appetite, large profit-taking pressure and weak long-term liquidation from short-term futures traders.
The overall US market was more upbeat at the start of a short trading week in the country due to the Thanksgiving holiday and that weighed on safe-haven metals.
There are reports that Israel and Hamas may be close to a ceasefire. In addition, the improved risk appetite is partly due to President-elect Donald Trump's pick of hedge fund manager Scott Bessent as Treasury Secretary. As one market watcher put it, the US financial system is in "safe hands" with Bessent at the helm of the US Treasury.
US stock indexes are not far off recent record highs. A rising stock market is also a negative for gold.
Major overseas markets saw the dollar index fall after hitting a two-year high on Friday. Nymex crude oil futures were lower at around $69.25 a barrel. Meanwhile, the yield on the benchmark 10-year U.S. Treasury note was around 4.2%.
Technically, December gold bulls have quickly lost their small overall near-term technical advantage. The bulls’ next upside price objective is to produce a close above solid resistance at the November 25 high of $2,723.20 an ounce.
The next downside price objective in the near term is to push futures prices below solid technical support at $2,600.
The first resistance is seen at $2,650 followed by $2,675. The first support is seen at $2,618.80 followed by $2,600.
