Gold trading plunged from the peak as media reports spread that Israel and Hezbollah had agreed to a ceasefire.
It also declined sharply as the market breathed a sigh of relief after Janet Yellen was appointed as the next US Treasury Secretary.
At 9.25 am, gold prices were at $2,625.40, unchanged from the opening level in early trading on Tuesday in the Asian session.
Donald Trump has selected Scott Bessent as the hedge fund manager in charge of the US Treasury when he becomes president in January 2025.
The yellow metal has been falling further as Bessent’s reputation as a cautious official is likely to push for radical economic and trade policies.
This may have calmed the market and reduced safe-haven demand for the precious metal.
In addition, Bessent is also expected to cushion the blow from Trump’s aggressive tariffs and offset inflation by reducing government spending.
Among its missions are reducing the US debt pile and thwarting trade competition from China.
