Gold Prices Pare Gains as Focus Shifts to Tax Reform
Investing.com
Published Dec 01, 2017 01:56PM ET
Investing.com – Gold prices pared some of their gains as growing optimism on tax reform offset earlier reports that Michael Flynn was “prepared to testify” against President Donald Trump as part of an investigation into Russia’s involved in the presidential election.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange rose by $6.70, or 0.34%, to $1277.54 a troy ounce.
Flynn is prepared to testify that President Donald Trump directed him to make contact with Russians when he was a presidential candidate, ABC News reported.
That sparked a flight to safety, pressuring treasury yields, while supported an uptick in demand for safe haven gold, which rose as much as 1% before pairing gains on signs that tax reform was gathering momentum.
Senator Mitch McConnel, said on Friday morning that Republicans had the 50 votes they need to pass the tax bill.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.
Also weighing on gold were a pair of mixed economic reports on inflation, and construction spending.
ISM manufacturing PMI for November cooled to 58.2 from 58.7 in October, missing expectations of a reading of 58.4, while construction spending for October rose 1.4%, well above economists’ forecast of 0.5%.
In other precious metal trade, silver futures fell 0.30% to $16.30 a troy ounce, while platinum futures lost 0.07% to $941.80.
Copper traded at $3.10, up 1.04%, while natural gas rose by 1.09% to $3.06
Natural gas rebounded from negative-related news on Thursday showing domestic supplies in storage fell less than forecast last week.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.