It was a steady week for gold but still, the prices remained below as dollar gained some strength this week. At Wednesday, the gold reached its highest level since mid-November and closed at $1243.9.
So, let’s look at the top five news that will affect the gold prices in the USA
Trump Tax reforms set the Wall Street record high
Trump policies continue to support the Wall Street investors. What do the investors want? Positive news or a sizzling speculation! This is what Trump able to give to Wall street so far. The indexes cross record high on Thursday as Trump announced, he will make some major tax announcement in a few weeks.
He gave a little hint in his speech and said,” lowering the tax burden will be a big league for the American businessman”.
The Dow 30 is currently trading at 20,269.37 indexes and S&P 500 Futures at 2,315.50 indexes. This news also helped to strength the dollar. The investors focused more on the dollar rather than the yellow gold next week.
Abe n Washington to Talk with Trump
This important news will affect the market next week in the USA. The Japanese Prime Minister will be meeting with the Donald Trump. The Japanese Prime Minister will talk about the crucial bilateral relationship, amid strain over trade and defense.
Donald trump foreign policy hasn’t been friendly so far. How he will greet Abe and what will be his response? The investors will be eyeing on this meeting!
Oil Continues to Tick Down
Different factors continue to affect the oil prices. The oil prices are going down and helping the gold market.
So, what are the main factors? The first and the most important factor is the investors are waiting for the Organization of Petroleum Exporting Countries report. This report will be evidence that the oil producers are serious to cut the output.
Moreover, the Russia has announced, if the global oil deal should be extended? According to the Russian Energy Minister Alexander Novak, he will meet the Saudi Arabia counterpart Khalid al Falih During the CeraWeek in Houston, which will be held in March.
All these factors will affect the oil prices next week. The investors are uncertain about the stability of the oil prices. All these aspects will continue to support gold consequently.
Gold Down in the Asian Market!
Gold is down in the Asian Market as the concerns are continued to grow over the N-Korea missile test program. Moreover, China will release the data on inflation this week.
How will it benefit the USA gold market? The Asian market is under uncertain condition. The investors will look into the USA market for safe investment in the gold.
Treasury yield post a weekly decline.
According to the most recent report, the treasury yield inched higher at Friday but reported lower at the end of the week. The reason behind the lower yield is the growing concern about geopolitical and uncertainty about President Donald Trump policies.
The 30-year Treasury bill yield ended at 3.01% on Friday which started at 3.11% at the start of this week. The 10-year yield ended at 2.41% on Friday. The stable gold prices will attract the investors as compared to the lower treasury yield.