Gold price comes under heavy selling pressure on the back of the upbeat market mood

The risk-on mood fails to assist the Gold price to capitalize on last week's strong gains and leads to an intraday turnaround from a three-week high on Monday.

Scott Bessent's nomination as US Treasury Secretary and de-escalation in the long-running Middle East conflict boosts investors' confidence at the start of a new week. 

Media reports suggest that Israel and the Lebanon-based Hezbollah militant group are on the cusp of a ceasefire deal, though an agreement is not fully formed yet. 

Furthermore, the optimism over more business-friendly policies from the new Trump administration remains supportive of a positive tone around the equity markets.

S&P Global's Composite US PMI rose to 55.3 in November – the highest level since April 2022 – and suggested that growth probably accelerated in the fourth quarter. 

The recent hawkish remarks from several Federal Reserve policymakers and potential inflation surprises could support an on-hold interest rate decision in December. 

The CME Group's FedWatch Tool indicates that traders are currently pricing in just over a 55% probability that the Fed will cut interest rates by 25 basis points next month.

Investors this week will closely scrutinize the minutes from the November FOMC meeting, and the US Personal Consumption and Expenditure (PCE) Price Index data. 

Bessent's conservative views on fiscal policy trigger a corrective decline in the US Treasury bond yields and prompt some US Dollar profit-taking from a two-year top.