XAU/USD: Gold Range-Bound Near $2,650 to Start Trading as Investors Shun Haven Assets

Precious metal has been largely out of the limelight these past few weeks with markets pivoting to risk assets as the Trump play unfurls in all its might.

• Gold XAUUSD was treading water early Monday near $2,650 per ounce as the broader markets were still hot to the touch after last week’s powerful move in risk assets. Stocks are taking off to record highs, Bitcoin is charting the never-before-seen territory above $100,000, and exuberant traders are having a blast with no signs of fatigue. All that thanks to one person — President-elect Donald Trump who has laid out a pro-growth agenda for America.
• Deregulation, lower taxes, higher tariffs and support for homegrowth business has prompted traders to flee from safe-haven assets and scoop up shares of real-economy companies, tech giants, AI plays, and crypto projects. As a result, gold has been largely left out of sight and out of mind. The precious metal skipped through an uneventful week with a 0.8% loss, piling on the previous week’s 2.4% decline.
• A rare glimmer of hope for gold bugs appeared on Friday when the US released the monthly jobs report. The nonfarm payrolls data for November showed 227,000 people got employed, exceeding consensus calls for 202,000. That was largely in favor of gold as it suggests that the Federal Reserve remains on track for another cut to interest rates. Lower borrowing costs make gold more competitive as they reduce the opportunity cost of holding bullion.