Gold Lower Ahead of Trump Tax Plan

Gold fell to a two-week low on Wednesday as investors opted for riskier assets such as equities on renewed optimism over the U.S. economy and as political uncertainty in France receded, softening demand for safe-haven assets.

Spot gold was mostly unchanged at $1,263.53 at 0741 GMT. Earlier in the session, prices hit a low of 1,260.90, their lowest since April 11.

U.S. gold futures were down 0.2 percent at $1,264.90 an ounce.

Asian stocks extended gains for a fifth straight day on Wednesday after Wall Street hit new peaks.

“Over the past two sessions, the momentum for gold to move ahead has actually faded away. We can see that risk appetite has increased after the easing situation in North Korea and French election results,” said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.

“We have to move back to the original gravity of trading range of $1,200-$1,250.”

U.S. President Donald Trump is proposing to slash the corporate income tax rate and offer multinational businesses a steep tax break on overseas profits brought into the United States, officials said late on Tuesday.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza