Gold prices lost about 3% after President-elect Donald Trump picked Scott Bessent as his Treasury secretary, with reports of Israel and Hezbollah nearing a ceasefire deal also eroding the safe-haven metal's appeal. A potential Israel-Hezbollah ceasefire agreement and Bessent's appointment were the key contributors to the bullion selloff amid a risk-on sentiment, Shiels added. Higher interest rates tend to erode the appeal of non-interest bearing gold compared to Treasuries — a competing safe-haven asset. Gold prices fell to a two-month low right after Trump's victory before rebounding to the $2,700 levels. Similar to when the Middle East conflict first broke out, gold prices tend to react very sharply initially before correcting over time as economic factors come back into focus, Eckford added, maintaining that gold prices were still set to advance toward $3,000 in 2025.

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Persons: Jerome Powell, Donald Trump, Scott Bessent, Nicky Shiels, Danny Danon, Israel, John Kirby, it's, Bessent, Daniel Ghali, Shiels, Ghali, Donald Trump's, Trump, Robert Eckford, Rua Gold, Eckford Organizations: Federal, New York Mercantile, MKS, House, Key, Shanghai Gold Exchange, Federal Reserve, CNBC Locations: Israel, Key U.S, Canada, Mexico, Russian, Ukraine