Yahoo Finance Gold Gains Slightly In Asia As China Market Concerns Ease, US Tax Cuts Eyed
Investing.com - Gold prices gained slightly in Asia on Friday as concerns over a sharp selloff in China overnight eased and investors turned focus to the U.S. and next week's Senate review of proposed tax cuts.
Comex gold futures gained 0.06% to $1,292.98 a troy ounce. On Thursday, China CSI 300 Index sank 52 points in the final 45 minutes of trading, the steepest afternoon decline since the depths of China’s stock market crash in January 2016.
Overnight, gold prices held steady in holiday-thinned trade on Thursday, after the minutes of the Federal Reserve's most recent policy meeting pushed the U.S. dollar, lending support to the precious metal.
Trade volumes were expected to remain light on Thursday, with Comex floor trading scheduled to remain closed for Thanksgiving. An abbreviated session was slated for Friday.
The greenback weakened after the minutes of the Fed's latest meeting showed that some policymakers remain concerned over persistently low inflation.
The report also showed that the Fed expects to raise interest rates in the "near term", adding to expectations for a December rate hike. However, the central bank added that economic data will determine the timing of future rate hikes, which could mean a slower pace than expected for 2018.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Another factor for rate hikes is whether the US Congress manages to pass a tax package this year, with a U.S. House of Representatives version and one in the Senate at odds on key points.
Related Articles
Gold Gains Slightly In Asia As China Market Concerns Ease, US Tax Cuts Eyed
Crude Oil Mixed In Asia Following Holiday In US, Focus On OPEC
Mercosur to offer EU faster reduction in tariffs: Argentine negotiator
