Gold futures prices rose to the highest level in one month on Monday, as the sinking dollar and global stocks after President Donald Trump’s failure to pass health care reform.
Comex gold futures reached a session peak of $1,259.20 a troy ounce, the highest since February 27.
At the MCX gold for delivery in June was trading higher by Rs 97, or 0.34 per cent, to Rs 29,034 per 10 grams.
Investors see Trump’s failure to pay health care bills as a sign could also face further setbacks in the implementation of other policy pledges, including corporate tax cuts, regulatory reform and infrastructure spending.
The dollar fell to its lowest level in five months against a basket of currencies, while the global equity markets sold after President Donald Trump failed to push through the health care reform bill prompted investors to question the extent that it can achieve the growth that has policies It has been priced since his election.
The dollar index, which measures the strength of the dollar versus a basket of six major currencies, fell nearly 0.9% at 98.74 in early New York morning trading, a level not seen since Nov 11.
The index rose to a 14-year high near 104.00 in early January when expectations for a big stimulus under Trump’s presidency were at its peak.
At the same time, US Treasuries fell, with the benchmark 10-year low hitting a four-week low of 2.357%.
100mcxtips commodity market analysts said market speculators have expanded their positions on the back of strong global trend as the dollar’s weakness against major currencies overseas after President Donald Trump’s failure to pass health care reform has raised doubts about his ability to push the economic agenda, influenced gold futures here.
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