Gold prices continued to fall from the three-week high set earlier in the session on Monday as investors settled their profits and traders adjusted their expectations for the Fed to cut interest rates and await further data to assess interest rate prospects.

As of press release, spot gold dived by $35 in the short term, hitting $2,660 per ounce downward, falling 2.07% during the day. Spot silver fell 2% during the day to $30.69 per ounce. Last week's gold performance was the best week since the pandemic. The price of gold once jumped to 2,721 dollars before a sharp correction on Monday.

Matt Simpson, senior analyst at City Index, said that the price of gold is under pressure because “some traders want to make a profit near the high of $2,718. Given the shortening of the trading week due to Thanksgiving in the US, I doubt that last week's gains will continue.”

According to CME's FedWatch tool, traders believe the probability that the Fed will cut interest rates by another 25 basis points in December is 51%, down from 62% last week. Last week, some Fed policymakers expressed concern that progress in inflation might stagnate and advocated caution, while others emphasized the need to continue cutting interest rates.

IG market strategist Yeap Jun Rong said that America's mild policy signals and potential inflation surprises may support keeping interest rates unchanged in December, and the prospect of slowing interest rate cuts may drag down the price of gold. Investors will focus on the Federal Reserve's November FOMC meeting minutes, GDP data (first revised value), and core PCE data this week.

Meanwhile, the US dollar index fell by 0.7%, limiting the further downside of gold and making gold more attractive to holders of other currencies. The yield on the benchmark 10-year US Treasury also declined. The decline in geopolitical risks outweighed the benefits of falling US dollar and US bond yields, putting pressure on gold prices.

Last weekend, US President-elect Trump appointed billionaire Scott Bessent (Scott Bessent) as Secretary of the Treasury. Becent was appointed to a key position in the Trump administration, which reassured the US Treasury market because he was seen as a Wall Street veteran and fiscal conservative. This removes uncertainty in the Trump administration and will inject more stability into the US economy and financial markets. Bezent, who runs the macro-hedge fund Key Square Group, said he would support Trump's tariffs and tax cuts, but investors want him to prioritize economic and market stability over political scores.

Brian Jacobsen (Brian Jacobsen), chief economist at Annex Wealth Management, said, “He brought a sense of progressivism to the government rather than adopting a big bang approach to carry out major policy changes.” He said the market might breathe a sigh of relief because his choice foreshadows “an 'America first' government rather than a government with 'America's monopoly'.”

The fall in gold prices is also due to the easing of geopolitical tension between Israel and Lebanon. According to Axios, Israel and Lebanon are about to reach a cease-fire agreement.

FXStreetTechnical analysisAccording to the teacher, the impending bearish Doji will continue to be bad for the price of gold. The 21-day EMA is moving closer to the 50-day SMA in the upward direction. If this happens at the daily close, it will validate a dead cross. theseTechnical indicatorsIt indicates that the trend may be shifting in favor of gold sellers.

RecentlySupport levelIt is near $2,670, which is the confluence of the 21-day EMA and the 50-day EMA. If it continues to fall below this level, it may start a new round of decline, falling to $2,600. Prior to that, the low of $2,619 on November 20 will be tested. Gold buyers, on the other hand, need the closing price of the daily chart above the November 5 high of $2,750 before they can resume their upward trend and advance to the all-time high of $2,790.