Gold maintained its upright position last Friday and global investors are anticipating the possible forecasts about tax reduction in the United States and the results of the French presidential elections over the weekend.
There is a possibility for buying a safe haven asset like the bullion after the statement of France that its security forces were completely organized for this weekend’s presidential election following the incident when an Islamic militant killed a policeman.
U.S. gold futures gained $5.30 to finish at $1,289.10 an ounce for its June delivery. Spot gold was higher by 0.33 percent to close at $1,285.58 an ounce. Commodity analysts at Mitsubishi Jonathan Butler said this weekend’s big news will be the presidential election in France and the market will grasp on that.
The administration of U.S. President Donald Trump will enact a tax reform plan in the near future and it is expected to be favored by the Congress this 2017, even if a healthcare improvement takes place or not, according to Treasury Secretary Steven Mnuchin.
Analysts are speculating that the yellow metal is at risk of profit taking following its previous firm run, however it should be backed by other circumstances. ANZ analyst in particular said that the gold had a hard time grasping this week’s gains due to the geopolitical concerns and a much stronger dollar.
Meanwhile in other precious metals, Palladium was 1.10 percent lower at $791.22, Platinum fell by 0.23 percent at $975.30, and the Spot silver dropped about 0.49 percent at $1791. Spot silver already lost more than 3 percent this week, prolonging its declines for five-straight sessions.
SPDR Gold Trust reported that its holdings edged lower by 0.6 percent to settle at 854.25 tons