Gold awaits news on tax reform

28 November, 2017

The gold price is making another run for the $1,300 mark in today’s trading session on the back of US dollar weakness and as the market gets ready for US President Donald Trump to meet with congress tomorrow to garner support for his tax reform package.

If Trump manages to convince congress of the benefits of his tax reform package, gold may suffer as the recent gains made have largely been in part due to the uncertainty of the tax reform.

"If we see finally some sort of movement in this area, that could reignite the trumpflation trade, risk assets could go to the races and we could see a pullback in gold as a risk hedge," said Mitsubishi analyst Jon Butler.

Also helping the gold price today was the Chinese stock market which had its biggest one day fall in nearly 2 years and left investors piling into safe haven assets such as gold.

Tomorrows testimony to congress from Jeremy Powell, Donald Trump’s pick to head the US Federal Reserve next year is likely to cause unrest in the markets and will probably lend support to the gold price until Powell’s nomination is confirmed.


Source link  
Pound may suffer in the long term

The British pound continues to power ahead in today's trading session after yesterday's developments in the British parliament that many see as ending...

Gold needs to remain above $1300

The gold price has staged a substantial rally since last week after the US Federal Reserve latest board meeting where they stated that any move...

Only way for oil is down

The oil price has now broken down through the all important $50 mark, which is a physiological blow to any chance of a rally, and according to...


D-Day for the pound

Traders and Fund managers alike are expected to be glued to their desk on Tuesday evening UK time as the British parliament vote on the Brexit Deal put before them...

Will gold's rally continue?

After spending the majority of November range bound, the gold price has finally broken out to the upside as investors seek out safe havens from the anticipated...

Dollar could weaken for years

The US dollar has been the star performer in the currency markets this year, gaining solidly against all the major currency but some are beginning...


Gold may finally Breakout

Gold is now on track to rack up its 5th straight day of gains on the back of geo political factors as well as expectations the US Federal Reserve may...

Will gold continue rally?

For more than 2 weeks now, the gold price has been on a steady uptrend after volatility in world stock markets, and in particular, the US market which...

Pound may be headed for parity

The market had been expecting such a move so all eyes were on the following monetary statement for signs of the US central bank's future moves...

  


Share it on:   or