Gold Demand Subdued by Advance in Global Shares and The Greenback
Gold futures prices slipped on Monday in the wake of a strengthening U.S. dollar and the advance of equities.
Global shares and the greenback extended gains on Monday as traders weighed on U.S. President Donald Trump’s promise last week to publish his “phenomenal” tax plans in the next few weeks. While Trump’s tax reform plans are expected to boost economic growth and corporate profits, concerns over his protectionist ideas on trade eased after the two-day U.S.-Japan summit held over the weekend ended smoothly without discussion on currency levels.
Coupled with the rally in risky assets that draw demand out of the so-called safe-haven asset namely gold, a higher U.S. currency causes dollar-denominated commodities to be more expensive for holders of other currencies, subduing demand for the precious metal.
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