Gold prices touched an over two – week low on Monday before paring losses as chart signals helped offset pressure from a stronger dollar and an early advance in equities. Gold prices were also under pressure from expectations that Japan’s ultra – loose monetary policy would stay in place after Prime Minister Shinzo Abe’s election victory at the weekend lifted the dollar to a three – month high versus the yen. Bullion is highly sensitive to rising U.S. interest rates, which lift the opportunity cost of holding non – yielding bullion while boosting the dollar, in which it is priced. The dollar had already posted its biggest one – day gain in a month on Friday after the U.S. Senate approved a budget blueprint for the 2018 financial year, allowing Republicans to pursue a tax – cut package without Democratic support. U.S. President Donald Trump is considering nominating Fed Governor Jerome Powell and Stanford University economist John Taylor for the Federal Reserve’s top two jobs. Powell is considered less hawkish than Taylor, who is seen advocating higher interest rates.
Source:-.moneycontrol
