The gold price rose during Asian morning trading on Wednesday December 20 as the US dollar weakened while the market awaits further developments on tax reform plans in the United States.
The spot gold price was quoted at $1,264.10-1,264.40 per oz, up by $2.55 as of 10:09am Shanghai time. Trade has ranged from $1,261.50-1,264.50 so far today.
- Stronger-than-expected housing data in the US and stronger equity markets had weighed on investor appetite for safe-haven assets like gold, resulting in a lackluster performance for the yellow metal in recent weeks, ANZ Research said on Wednesday.
- The US dollar has weakened as the market awaits the passing of the US tax reform bill. The bill has since been passed by the House of Representatives, and now heads to the Senate for passing, which market observers expect could happen within today.
- “A weaker US dollar continues to be supportive of the current upside momentum [for gold]…With the US tax bill is almost certain to pass, investors are likely to stay on a risk-on mode into year end,” Commerzbank said late on Tuesday.
Silver, PGMs
- In the other precious metals, the spot silver price was up by $0.035 to $16.15-16.17 per oz. Platinum increased $3 to $912-917 per oz, and palladium rose $3 to $1,023-$1,028 per oz.
- On the Shanghai Futures Exchange, gold for June delivery was recently at 275.40 yuan ($41.61) per gram, and the June silver contract was at 3,804 yuan per kg.
Currency moves and data releases
- The dollar index was down by 0.08% at 93.43 as of 10.04am Shanghai time.
- In other commodities, the Brent crude oil spot price was up 0.03% to $63.87 per barrel as of 10:09am Shanghai time.
- In equities, the Shanghai Composite was down 0.04% to 3,295.27.
- In US data from Tuesday, building permits came in at 1.30 million, above the forecast of 1.27 million. Housing starts also came in at 1.30 million, while the current account balance stood at -$101 billion – both were higher than expectations.
- Key economic data due later today include the CB leading index for China, and existing home sales and crude oil inventories from the US.
- The market will also look to news coming from China’s Central Economic Work Conference, which kicked off on Monday. Conclusions from the closed meetings will provide insights into the country’s economic agenda for next year.
The post Gold price boosted by weaker US dollar, awaits US tax reform plans appeared first on The Bullion Desk.
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Source: Bullion Desk News
