Gold prices plunged over 3% on Monday, breaking a five-session rally to its highest in nearly three weeks, as reports of Israel nearing a ceasefire with Hezbollah, coupled with Trump's nomination of Scott Bessent as the U.

A potential Israel-Hezbollah ceasefire agreement and Bessent's appointment were the key contributors to the bullion selloff, experts said.

The Biden administration kept President-elect Donald Trump's incoming administration closely apprised of its efforts to broker the ceasefire deal between Israel and Hezbollah that took effect early Wednesday,

Gold prices edged up on Tuesday, having touched their lowest in over a week earlier in the session as safe-haven demand for the metal eased on optimism about a potential ceasefire between Israel and Hezbollah militants in Lebanon.

The Israeli security cabinet has approved a US-brokered ceasefire deal with Lebanon's Hezbollah group, Israel's Channel 12 and the news site ynet reported on Tuesday evening. Prime Minister Benjamin Netanyahu had called on the cabinet to back the deal to end the fighting which has been ongoing for more than a year.