Gold looks to tax reforms

21 November, 2017

The gold price is slightly lower in today’s European trading session although it is still hovering around 1 month highs as fears grow that US President Donald Trump’s tax plan is on the verge of falling apart.

Roy Moore, candidate from Trump’s Republican Party who is the candidate in the upcoming senate elections for the state of Alabama on December 12th is refusing to step down in light of allegations that he sexually assaulted at least 5 girls while in his thirties.

Up until 2 weeks ago, Moore was a sure thing to get elected but after the Washington post released the devastating news last week, he has slumped in the polls and now the Democratic candidate Doug Jones is favored to win.

So what does this mean for gold?

The US dollar has been powering ahead in recent weeks as expectations grew that Trump would be able to deliver his tax reforms with a comfortable majority in the senate but if he loses Alabama, that majority will become unstable.

It will leave the Republicans with only a one seat margin to pass legislation which means it will only take one senator to cross the floor( At least 2 senators don’t support the new tax policy in its current version) and the deal will fall apart.

This will be devastating for the US dollar and gold will receive a huge boost.

"Friday's move higher has definitely improved gold's chart patterns, but it remains to be seen if this will be enough to attract fresh fund buying," said INTL FCStone analyst Edward Meir.

 "Much of this will depend on the progress or lack thereof that the U.S. tax bill makes in the Senate. If efforts to pass it flounder, we could see a much sharper correction set in over U.S. equities, prompting another leg higher in gold." He added


Source link  
Impeachment talk boosts gold

The gold price hit is highest level in 3 weeks yesterday after calls for the impeachment of US President Donald Trump left financial markets...

Oil to hit $75

The oil price surged as high as 20 percent is yeaterday’s trading session after an attack on Saudi Arabia’s biggest oil field removed more than 5 million...

Gold headed for $1600

The gold price remains steady today after turning back from what was beginning to look like a solid rally yesterday after words by US President...


Euro awaits Jackson hole

Despite all the pressure facing the European economy the Euro has managed to remain above the $1.10 level, but it seems the market is predicting...

Gold's next target is $1600

The gold price has taken a breather over the last few days after rallying more than $100 dollars in the space of 2 weeks and some...

Gold rally not over

The gold price remains firmly above the US $1500 dollar mark in today's trading session as traders seek out the precious metal as a safe haven on the back of political...


Gold poised to hit $1500

Gold continues to surge in today's trading session, following on from last weeks solid gains as investors seek out safe havens against the...

Aussie dollar up on Chinese data

The Australian dollar remains firmly above the US70c mark in today’s trading session after a strong round of data out of China alleviated...

Pound may hit $1.37 by years end

The British pound is expected to face increased volatility over the coming months as the deadline approaches for the UK to leave the EU at the end...

  


Share it on:   or