The price of gold remained solid on Friday’s session as the U.S. dollar was nearly unchanged after the released tax reforms.
Last Thursday, Republicans from the House of Representatives in the United States revealed a tax bill that costs more than $1.51 trillion. They also deepened tax cuts, just as what U.S. President Donald Trump promised. This had set off a race in the Congress to give him his very first win.
In reaction to the news, the U.S. dollar fell to its lowest level against its peers in the midst of unveiling the new tax reform. The index which measures the value of the greenback against its major opposing currencies, the U.S. dollar index, was steady at 94.698 this Friday.
It is already given that a weaker dollar is good for gold prices because it will make the non-yielding bullion low prices for holders outside the United States. This movement will further increase the yellow metal’s demand.
Looking on the price of gold today, U.S. gold futures was unmoved at $1,278.50 an ounce for its December delivery. Meanwhile, spot gold slightly traded above the flat line by 0.2 percent and finished at $1,277.88 an ounce. In its last settlement, spot gold had notched a two-week high of $1,284.10 an ounce.
Outside the U.S., Shenzhen and Hong Kong will start a gold market tie-up this November 3. This had strengthened the Chinese currency’s internationalization and cross-border bullion trading.