According to Jinshi Data, gold futures plunged as investors took profits ahead of the release of US economic data. Pepperstone analyst Chris Weston pointed out that gold futures saw a sustained sell-off in Asian markets on Monday after rising 5.4% last week.
Weston said the sell-off was likely a positioning adjustment rather than a cooling of safe-haven demand, with some investors likely to close their long bets on gold ahead of Tuesday’s U.S. consumer confidence report.
Weston added that U.S. core personal consumption expenditures data due on Wednesday could pick up, reducing the likelihood of a rate cut in December.