Gold Prices Hover Near 1-Week Highs on Weaker Dollar
Investing.com - Gold prices were hovering near one-week highs on Friday, as fresh concerns over U.S. tax reform plans weighed on the dollar and as markets were still digesting the Federal Reserve's latest policy statement.
Comex gold futures were up $1.80 or about 0.15% at $1,258.90 a troy ounce by 03:00 a.m. ET (07:00 GMT), just off a one-week high of $1,261.50 hit on Thursday.
The greenback came under pressure after two U.S. Republican senators on Thursday sought changes to the proposed U.S. tax reform bill.
The bill needs a simple majority to pass in the Senate, in which Republicans hold just 52 of the 100 seats.
On Wednesday, the Fed raised interest rates by 0.25 basis points to 1.50% at the conclusion of its policy meeting, in line with expectations.
However, the central bank did not change its projections for 2018, which include three more interest rate hikes in both 2018 and 2019, disappointing expectations for four rate hikes next year.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 93.50.
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.
Elsewhere on the Comex, silver futures added 0.16% to $15.96 a troy ounce.
Related Articles
Oil prices rise on North Sea pipeline outage, but growing US output looms
Exclusive: China's CNPC weighs taking over Iran project if Total leaves - sources
