|
CHICAGO, Feb. 24 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as traders began to expect that U.S. President Donald Trump's reforms would take longer to implement.
The most active gold contract for March delivery rose 6.9 U.S. dollars, or 0.55 percent, to settle at 1,258.30 U.S. dollars per ounce.
U.S. Treasury Secretary Steven Mnuchin told U.S. media that he hopes to pass tax reform by August. Analysts believe that expectations for tax reform were for it to be implemented much quicker than August.
As a result, investors are adjusting their expectations for the implementation of many of the presidents economic policies. This gave support to the precious metal as many of the pressures put on gold earlier in the year were due to expectations over the newly elected president.
A report released by the U.S. Census Department on Friday also gave support to the precious metal as the report showed new home sales increasing to a 555,000 level during the month of January, a figure which was below analyst expectations. Investors have noted rising supply and falling prices, which put pressure on new home sales, and added support to gold.
Gold was given additional support as the U.S. Dow Jones Industrial Average fell by 56.75 points, or 0.27 percent as of 1840 GMT. Analysts note that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.
The precious metal was prevented from rising further as the U.S. Dollar Index rose by 0.15 percent to 101.13 as of 1840 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall as gold, measured by the dollar, becomes more expensive for investors.
Investors are waiting for several key economic reports due next week. The durable goods orders report is due Monday, gross domestic product and international trade in goods is due Tuesday, personal income and outlays is due on Wednesday, weekly jobless claims is due on Thursday, and Friday will see several Fed officials giving speeches, including Fed Chair Janet Yellen.
Silver for March delivery rose 22.2 cents, or 1.23 percent, to close at 18.339 dollars per ounce. Platinum for April delivery added 16.8 dollars, or 1.66 percent, to close at 1,028.70 dollars per ounce.
