On Wednesday, gold plunged in Asia as Donald Trump presented a strong law-and-order speech to the U.S. Congress that included a restriction on illegal immigration and restated call for wall on the border with Mexico, while calling for a massive repair of the nation’s tax system and increased spending on infrastructure and defense.
The Trump list of things also included a call for lower drug prices and undetermined new healthcare coverage plan.
Delivery of gold in May on the Comex division of the New York Mercantile Exchange fell 0.51% to $1,247.45 troy ounce.
Also on the Comex, delivery of silver futures for May declined 0.58% to $18.362 a troy ounce. Copper futures increased 0.29% to $2.723 a pound, 10:03PM ET.
Investors noted positive manufacturing figures from China that established the stage for global growth hopes.
On Tuesday, gold Futures traded lower overnight, as the greenback moved off session lows, ahead of President Trump’s speech to congress. In spite of a mixed batch of U.S. economic data, gold futures fight for direction in mid-afternoon trade, as President Trump’s address to congress on Tuesday at 9 PM EST remained front and center.
In the final three months of 2016 gross domestic product (GDP) increased at a 1.9% annual rate, the Commerce Department stated on Tuesday its second estimate for the period. Analysts expected a 2.1% yearly rate increase.
The Consumer Confidence Index, which gauges consumers’ assessment of the latest conditions in the U.S., touched 114.8 in February, according to the statistics from The Conference Board. Economist anticipated the Consumer Confidence index to hit 111 in February.
The mixed bag of economic statistics came during renewed expectations of a March interest rate hike, after Dallas Fed President Robert Kaplan on Monday restated his outlook that a rate hike should happen sooner rather than later.
Fed fund futures priced in approximately a 40% probability of a rate hike in March, according to the reports.
Gold is sensitive to changes in U.S. interest rates, which lift the opportunity cost of holding non-yielding assets like bullion, while increasing the dollar in which it is priced.
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