Investing.com – Gold prices fell sharply on Friday but remained on track to snap three to three-week losing streak amid dollar weakness.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $13.10, or 1.02%, to $1274.41 a troy ounce.
Gold prices fell 1% intraday as investors appeared to unwind their bullish positions on the precious metal despite ongoing dollar weakness amid fears of delay to corporate tax cuts.
U.S. Senate Republicans unveiled a tax plan on Thursday that was significantly different from the House of Representatives’ version, as the Senate’s plan proposed a cut to the corporate rate to 20% from 35% in 2019, which differs from the GOP plan to slash the corporate rate immediately.
President Trump’s tax-reform plan, which is widely viewed as inflationary – a boon for the U.S. dollar – was widely expected to be enacted before year-end.
Gold prices are sensitive to moves lower in the U.S. dollar – A lower dollar makes gold cheaper for holders of foreign currency, thus, increases demand.
The outlook for gold turned negative after data from the World Gold Council showed global demand for gold slipped 9% to 915 tonnes during the third quarter of 2017, compared to the same period a year ago.
In other precious metal trade, silver futures fell 0.54% to $16.88 a troy ounce, while platinum futures lost 1.06% to $930.65.
Copper traded at $3.08, down 0.32% while natural gas rose by 0.03% to $3.2.