Gold is in the Spotlight After Recent Political Developments
(6 months ago)
NEW YORK: Gold price rose on Wednesday as report said the Senate is considering to postpone the tax reform plan. Gold Spot rose 0.54 percent to USD 1,282 per ounce during the Wednesday trading session. While U.S. Gold future for December delivery was up 0.56 percent to USD 1,283 per ounce.
According to an article from the Washington Post, the Senate Republican leaders were exploring a delay in the implementation of a corporate tax cut until 2019. The U.S. dollar weakened against major currencies on Wednesday after the news. The U.S. dollar index fell 0.06 percent to a three-month low at 94.85. Gold price is sensitive to the U.S. dollar as a weaker dollar makes other currencies holders cheaper to buy dollar-denominated commodities. Bonterra Res Inc. (OTC: BONXF), Harmony Gold Mining Company Limited (NYSE: HMY), Yamana Gold Inc. (NYSE: AUY), Asanko Gold Inc. (NYSE: AKG), B2Gold Corp. (NYSE: BTG).
The yellow metal has gained 11.75 percent this year. According to an article from Kitco News, Macquarie Group said in a recent report that gold may hit $1,400 in 2018. "Yes, the Fed will have to raise rates - growth remains higher than trend - but this is becoming true elsewhere," the bank said. "Crucially we think the dollar is more likely to weaken than strengthen pre-2014 levels are perfectly achievable. And political risk factors - an unpopular president unable to match up to his domestic promises and facing complex and potentially unsolvable foreign problems - are also be in gold's favor."