Gold and silver are trading lower and nearing their daily lows during the midday session in the US markets on Monday. The decline was due to improved risk appetite, profit-taking pressures and liquidation of long positions by traders in short-term futures contracts. December gold futures fell $85.50 to $2,626.80, while December silver futures fell $0.948 to $30.39.

Optimism prevailing in US markets at the beginning of this week, which coincides with the Thanksgiving holiday, has negatively affected precious metals, which are considered safe havens. Reports of an imminent ceasefire agreement between Israel and Hamas have also boosted investors’ appetite for riskier assets. In another context, President-elect Donald Trump’s selection of Scott Bessent, a hedge fund manager, as Treasury Secretary has contributed to raising market optimism, as analysts expect Bessent to contribute to strengthening the stability of the US financial system. However, the new administration faces significant challenges, as the Wall Street Journal pointed out in a report titled “Markets Focus on the Deficit,” which links these challenges to the recent rise in US Treasury yields.

US stock indices were volatile midday but remain close to record highs, making them an attractive investment alternative compared to metals.

Meanwhile, the US dollar index saw a slight decline as a result of a correction after hitting a two-year high on Friday. Crude oil prices on the Nymex exchange also declined, as they are trading near the $69.25 level per barrel, while the yield on the US 10-year Treasury bonds stabilized at around 4.2%.

This decline is likely related to circulating news about a preliminary ceasefire agreement between Hezbollah and Israel regarding the situation in southern Lebanon.