Investing.com - Gold prices traded higher on Monday, as investors raised concerns over President Trump’s ability to deliver on his pro-growth policies, after the Trump administration failed to push a health care bill through congress on Friday.
Gold for April delivery on the Comex division of the New York Mercantile Exchange gained $6.75 or 0.54%, to trade at $1,255.25 a troy ounce by 13:47 EDT. Gold prices rose to a session of high of $1,260.95 in early morning trade.
Gold prices remained at session highs, after a slump in the dollar continued to lend support to dollar-denominated gold, as investors fled the so-called ‘Trumpflation trade’ amid worries that the healthcare bill setback could weigh on the success of Trump’s pro-growth policies being passed.
The dollar had rallied post-election, as investors piled into the so-called ‘Trumpflation trade’ based on the notion that President Trump’s promise to increase spending, speed up deregulation and introduce tax-reform, viewed as inflationary, would perk up the dollar.
House Speaker Ryan, failed to address concerns regarding Trump’s ability to push through his pro-growth economic agenda, which includes tax reform, after Mr Ryan admitted on Friday that “it [the withdrawal of the healthcare bill] does make tax reform more difficult but it does not make it impossible”.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, lost 0.63% to 98.96 by 13:59 EDT. The dollar sank to a four-month low of 98.67 at the start of the U.S. session.
The slump in the dollar supported commodity prices across the board, as silver futures rose 2.03% to $18.11, a troy ounce while copper traded mostly flat.
Platinum tacked on 0.33% to $974.45 while Natural Gas traded 0.27% lower to $3.151.