New York, US (BBN) – Gold prices gained in early Asia on Monday as investors see a week of political risk events, including Britain’s move to formally start its break from the European Union, reports
Prime Minister Theresa May will set out how her government plans to restore sovereignty over Britain’s laws on Thursday, publishing a detailed paper on ending “the supremacy of EU lawmakers,” according to Reuters.
Gold for April delivery rose 0.73 per cent to $1,252.90 on the Comex division of the New York Mercantile Exchange.
On Monday, the Ifo Institute will report on German business climate and Federal Reserve Bank of Chicago President Charles Evans and Dallas Fed President Robert Kaplan are scheduled to speak.
In the week ahead, investors will be continuing to monitor political developments in the US, as Trump’s promised tax reforms come into focus.
Expectations that the Trump administration would spur growth and inflation through fiscal stimulus pushed the dollar to 14-year highs in the weeks after the election.
But the greenback has weakened in recent week as it became apparent that the White House would have difficulty in delivering on its legislative agenda.
Last week, gold prices retraced gains late Friday but still notched up a second weekly rise as concerns over the Trump administration’s ability to push through its pro-growth economic agenda underpinned safe haven demand.
Prices of the precious metal turned lower as the dollar steadied after Republican leaders dropped legislation to replace the Affordable Care Act before a planned vote in the House of Representatives, after it failed to gather enough support to pass.
Investors viewed the Trump administration’s failure to push through a healthcare overhaul as a sign he may also face further setbacks delivering on other policy pledges including corporate tax cuts, regulatory reform and infrastructure spending.