Gold sheds 1pc on profit taking

Gold prices declined 1 per cent on Monday as investors booked profits following a five-session rally to a three-week high, while the announcement of fund manager Scott Bessent as the new US Treasury Secretary tempered safe-haven buying, reports Reuters.

Spot gold was down 1 per cent at $2,686.73 per ounce as of 1147 GMT, after declining 2 per cent earlier in the session. US gold futures shed 0.9 per cent to $2,688.40.

Bullion had hit its highest since November 6 in early Asia trade after posting its best weekly gain in nearly two years on Friday.

The two factors weighing on gold include profit taking after the solid rally last week, and the nomination of Scott Bessent as the next US Treasury secretary with some market participants seeing him as less negative for a trade war, said UBS analyst Giovanni Staunovo.

Gold is traditionally seen as a safe investment during economic and political risks, while some strategists believe that Bessent's nomination was a relief as he understands markets and his appointment could reduce the chance of severe tariffs on U.S. trade partners.

Spot silver fell 1.6 per cent to $30.81 per ounce, and platinum was down 1.1 per cent to $952.81.