Gold headed for the lowest close in a month as the dollar climbed after Senate Republicans on Saturday approved a rewrite of the U.S. tax code, stoking optimism over President Donald Trump’s stimulus plans.
Metal for immediate delivery traded 0.5 percent lower at $1,274.20 an ounce as of 10:48 a.m. New York time, according to Bloomberg generic pricing. A close at that level will be the lowest since Nov. 3.
Senate Republicans narrowly approved sweeping changes that would cut corporate taxes and provide temporary relief for most Americans. This mitigated risk concerns after markets were spooked by news that former National Security Adviser Michael Flynn pleaded guilty Friday to lying to FBI agents and was cooperating with an investigation into possible Russian interference in U.S elections.
“In the early hours of Saturday morning, the U.S. Senate then passed a tax reform bill that envisages extensive tax cuts,” analysts at Commerzbank AG including Eugen Weinberg said in an emailed note. “Market participants regained their risk appetite as a result, so the gold price fell accordingly.”
Other precious metals followed gold lower, with spot silver, platinum and palladium all declining.
Story by Eddie VanDer Walt and Ranjeetha Pakiam.