Gold Prices Surge to Nearly 3-Weeks Highs amid Dollar Weakness

Gold Prices Surge to Nearly 3-Weeks Highs amid Dollar Weakness© Reuters. – prices rose to a nearly three-week high on Wednesday as ongoing concerns over tax reform weighed on the dollar, boosting demand for the precious metal.

for December delivery on the Comex division of the Mercantile Exchange rose by $8.02, or 0.63%, to $1283.85 a troy ounce.

reversed losses from Tuesday’s session, as the dollar came under pressure on signs that the GOP Senate could derail Donald Trump’s Tax plan by delaying the implementation of corporate tax cuts, with reports suggesting that the Senate is considering a one-year delay.

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.

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The uptick in gold prices comes as recent data suggested that traders were slightly less bearish on the precious metal.

Net bullish bets on gold rose to 193,100, from 191,400 the previous week according to a report from the Commodity Trading Commission (CFTC) on Friday.

“Speculative financial are still withdrawing from gold,” Commerzbank said n Monday. “Net long positions decreased.”

In other precious metal trade, rose 0.99% to $117.11 a troy ounce, while added 1.22% to $936.55.

traded at $3.10, up 0.42% while rose by 0.98% to $3.18.

The uptick in natural gas prices comes as Commodity Weather Group said it expected below-normal temperatures in U.S. Pacific Northwest, Midwest and parts of Northeast between Nov. 6-10.

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