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Gold slides to 2-week low ahead of Trump's tax plan announcement

Published 04/26/2017, 08:38 AM
Updated 04/26/2017, 08:38 AM
Gold slides to 2-week low ahead of Trump's tax plan

Gold slides to 2-week low ahead of Trump's tax plan

Investing.com - Gold prices edged lower in North American trading on Wednesday, nursing overnight losses as investors looked ahead to an expected tax reform announcement from U.S. President Donald Trump's administration later in the day.

Comex gold futures shed $3.70, or around 0.3%, to $1,263.40 a troy ounce by 8:35AM ET (12:35GMT), after falling to $1,262.30, a level not seen since April 11. Meanwhile, spot gold was steady at $1,262.10.

The yellow metal settled lower for the second straight session on Tuesday as investors dumped safe-haven assets amid reduced concerns over the French presidential elections.

Also on the Comex, silver futures declined 11.5 cents, or about 0.7% to $17.54 a troy ounce, after touching a five-week low of $17.52 earlier in the session.

Trump is expected to propose cutting the income tax rate paid by public corporations to 15% from 35%, and allowing multinationals to bring in overseas profits at a tax rate of 10% versus 35% now.

Treasury Secretary Steven Mnuchin and National Economic Director Gary Cohn are set to conduct a joint news conference at around 1:30PM ET (17:30GMT) on Wednesday from the White House Briefing Room to announce the tax plan.

Meanwhile, the threat of a U.S. government shutdown this weekend appeared to recede after Trump backed away from a demand that Congress include funding for his planned border wall with Mexico in a spending bill.

Also on markets’ radar, Trump invited all 100 members of the Senate to attend the session with Secretary of State Rex Tillerson, Secretary of Defense Jim Mattis, Director of National Intelligence Dan Coats and Marine General Joseph Dunford, chairman of the Joint Chiefs of Staff later on Wednesday with hopes to forge a strategy to deal with North Korea’s development of nuclear weapons and long-range ballistic missiles.

The same four officials will then go to Capitol Hill to brief the entire House at 5:00PM ET (21:00GMT), a senior House aide said.

Market sentiment remained upbeat as political concerns in France ebbed after business-friendly centrist Emmanuel Macron won the first round of the French vote on Sunday and opinion polls indicated broad support for him in a runoff vote due to take place May 7 against the eurosceptic Marine Le Pen.

Elsewhere in metals trading, platinum inched down 0.3% to $954.75, while palladium added 0.4% to $799.60 an ounce.

May copper futures ticked up 0.5 cents to $2.596 a pound.

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