Investing.com – Gold prices rose to three-week highs on Thursday amid a slump in the dollar on fears that the Senate would delay corporate tax cuts until 2019.
for December delivery on the Comex division of the New York Mercantile Exchange rose by $4.05, or 0.32%, to $1287.84 a troy ounce.
Gold prices added to gains from Wednesday’s session after the dollar fell on reports that Senate Republicans on Thursday will propose delaying a cut in the corporate tax rate from 35% to 20% until 2019.
The news of a possible delay to corporate tax cuts halted recent risk-on sentiment, fueling a flight-to-safety as traders appeared to unwind their bullish bets on riskier assets which followed on expectations that President Trump’s tax-reform plans would be enacted before year-end.
Gold prices are sensitive to moves lower in the U.S. dollar – A lower dollar makes gold cheaper for holders of foreign currency, thus, increases demand.
Also supporting demand for safe-haven gold was ongoing political unrest in the Middle East after Saudi Arabia advised citizens not to travel to Lebanon and urged the international community to impose fresh sanctions on Iran.
In other precious metal trade, fell 0.86% to $16.99 a troy ounce, while added 0.23% to $940.05.
traded at $3.09, down 0.47% while rose by 0.88% to $3.85, following data showing the natural storage came in line with expectations.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com
