Column: Trump 2.0 won’t reverse Biden’s critical minerals push
Donald Trump has described the Inflation Reduction Act (IRA) as a "green scam" and vowed to repeal it after he returns to the White House in January.
Gold prices slid by over 1% on Monday as risk appetite improved amid cautious hopes for progress in peace talks between Ukraine and Russia.
Spot gold fell 1.4% to $1,955.43 per ounce by 11:40 a.m. ET, still maintaining a six-month high. US gold futures were also down 1.4%, trading at $1,957.80 per ounce on the Comex.
[Click here for an interactive chart of gold prices]
Meanwhile, benchmark US 10-year Treasury yields saw a slight bump with the anticipation of a Federal Reserve rate hike this week, adding further pressure to the non-yielding bullion.
While there is a risk-on mood across major markets, “I wouldn’t call this (the recent rally) the peak in gold just yet, because this (Ukraine) situation is still uncertain. It’s so fluid,” Julius Baer analyst Carsten Menke told Reuters.
Short-term speculative traders who bought gold due to the war were now possibly booking profits, Menke added.
Elsewhere, palladium had a more dramatic drop as concerns of a supply shortage eased. The precious metal used in catalytic converters was down 11.8% to $2,412.84 per ounce, after recently hitting record highs.
“Palladium over-reacted in the first place,” StoneX analyst Rhona O’Connell said. “The rally we’ve seen has been built on straw, rather than on concrete.”
There was no clear supply disruption and very little industrial demand, she added.
(With files from Reuters)
