Gold Prices Retreat from Three-Week High Amid Profit Taking

Forex - Gold prices have retreated from a three-week high due to investors focusing on profit-taking. Gold futures fell to as low as $2,659.61 in the early hours and are currently trading at $2,671.64 per ounce, down 1.26% from Friday.

City Index senior analyst Matt Simpson stated, "Given that gold futures had their best week since the pandemic last week, some traders are looking to take profits around $2,718, which is putting pressure on gold. I am skeptical that we will see a continuation of last week's gains due to the shortened trading week because of Thanksgiving in the U.S."

According to the CME FedWatch tool, the probability of a 25 basis point interest rate cut from the Fed in December has dropped from 62% last week to 51%. Analysts emphasize that high interest rates, which make non-yielding assets like gold less attractive, could also exert further pressure on the metal.