Get positive forecast, what makes gold price plummet

Last week, 18 experts participated in Kitco News' weekly survey. 89% predicted that gold prices would rise this week. Similarly, in the online survey, 66% of individual investors also said that gold prices would continue to rise. However, in the first trading session of the week, world gold prices fell sharply.

World gold prices fell sharply despite the sharp decline in the USD index. Recorded at 7:40 p.m. on November 25, the US Dollar Index, which measures the greenback's fluctuations against six major currencies, was at 106.959 points (down 0.51%).

Gold prices fell 1% on Monday as investors took profits after a five-session rally to a three-week high, Reuters reported.

Gold’s five-session rally has been halted by profit-taking, said Yeap Jun Rong, market strategist at IG, adding that “Donald Trump’s pick of Scott Bessent as US Treasury Secretary, hints of a reduction in tariffs and easing of US-China trade concerns” have dampened demand for safe-haven assets.

Agreeing, UBS analyst Giovanni Staunovo said: "Two factors are weighing on gold, including profit-taking after last week's strong rally and the nomination of Scott Bessent as the next US Treasury Secretary. Some market participants believe he is less negative on the trade war."

“We are likely to see some profit-taking,” Renisha Chainani, head of research at Augmont - Gold For All, told Livemint. “Gold prices have corrected this week as prices have gone too high. The key support levels are the 50-day moving average at around $2,650 an ounce.”

Gold remains in an uptrend as long as prices remain above $2,550/oz. We are likely to see buying at lower levels if these support levels hold.”

The expert emphasized that "the conflict between Russia and Ukraine, which began on February 22, 2022, has lasted more than 1,000 days and is still having a major impact on the precious metals market."

Investors are awaiting the minutes of the US Federal Reserve's November FOMC meeting, GDP data (first revision) and core PCE indices, all scheduled for release this week.

"Markets are widely expecting the Fed to cut interest rates by 25 basis points at its next meeting on December 18, although traders have reduced bets on this outcome in recent days," Frank Watson, a market analyst at Kinesis Money, said in a note.

Traders now see a 56% chance of another 25 basis point rate cut in December, according to the CME FedWatch tool.