Gold steadies ahead of Fed minutes and amid geopolitical developments – London Business News | Londonlovesbusiness.com

Gold steadied to a certain extent after a sharp decline in the previous session.

The earlier drop was driven by reports of easing geopolitical tensions in the Middle East, as a ceasefire agreement seems near, dampening demand for safe-haven assets.

The market is also reacting to Donald Trump’s announcement of new trade measures, including a 25% tariff on imports from Mexico and Canada and an additional 10% tariff on Chinese goods.

This comes in addition to the nomination of Scott Bessent as Treasury Secretary, who proposed a phased approach to trade restrictions and expressed openness to negotiating tariff levels in alignment with the incoming administration’s policies.
Investors are now turning their attention to the Federal Reserve’s November meeting minutes, set to be released later today.

Sentiment remains divided on the likelihood of a December rate cut.

In the short term, gold remains under pressure from the strong dollar and elevated treasury yields. However, the medium to long-term outlook could shift if trade tensions escalate, potentially disrupting international trade relations. Such developments may heighten market uncertainty, driving increased demand for safe-haven assets such as gold as investors seek protection against market risks and economic instability.