According to Odaily, gold futures experienced a decline after U.S. President-elect Donald Trump appointed Scott Besant as the Treasury Secretary. This decision has influenced market dynamics, as noted by Ole Hansen from Saxo Bank in a recent report. Hansen highlighted that Trump's choice of Besant, a billionaire hedge fund manager, as Treasury Secretary has dampened safe-haven activities, resulting in slight decreases in gold prices, the U.S. dollar, and U.S. Treasury yields, while the stock market saw an uptick.
Hansen further explained that Besant is known for his fiscal hawkishness and his belief in using tariffs more strategically as a negotiation tool, advocating for their gradual implementation. The announcement of Besant's appointment led to a significant drop in gold prices, reflecting a reduction in concerns over the U.S. debt situation and a squeeze on recently established long positions. This market reaction underscores the impact of Besant's fiscal policies and the broader economic implications of his appointment as Treasury Secretary.