Gold Prices Pare Gains as Focus Shifts to Tax Reform

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.

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.

for November cooled to 58.2 from 58.7 in October, missing expectations of a reading of 58.4, while for October rose 1.4%, well above economists’ forecast of 0.5%.

In other precious metal trade, fell 0.30% to $16.30 a troy ounce, while lost 0.07% to $941.80.

traded at $3.10, up 1.04%, while 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.

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