Gold prices fell after the surge of dollar amid doubts on U.S. tax code progress

Gold futures

The price of gold was in the negative territory on Monday’s opening bell as it was dragged down by a much stronger dollar. However, the bullion is still not that far from a one-month peak after the doubts surrounding the U.S. tax reform progress.

According to a senior aide in the White House yesterday, U.S. President Donald Trump has no plans on insisting on including repeal of Obama’s “Obamacare” mandate in a law that is for enacting the largest tax overhaul since in the 1980’s.

Edward Meir, an analyst from INTL FCStone, noted on the day that the bullion’s movement last Friday has definitely strengthened its chart patterns, but it still to be seen if this will be sufficient to attract new fund buying for investors.

Meir added that almost all of this will rely on the tax reform’s progress in the U.S. Senate and if the efforts on passing the bill might fail, a sharper correction set in the equities can clearly be seen. This can lead to higher gold prices.

Looking at gold prices, U.S. gold futures edged down as low as 0.3 percent to settle at $1,292.30 an ounce for its December delivery. Spot gold dropped more than 0.2 percent to finish trading at $1.291.7 an ounce. The yellow metal surged as high as 1.3 percent last Friday, touching a one-month high of $1,297 an ounce.

On other precious metals: palladium added 0.2 percent at $994.85 per ounce, platinum fell as low as 1.1 percent at $939.99 and spot silver dropped by 0.8 percent at $17.17.

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