Gold futures struggle near 2-week low ahead of Trump's tax plan

By Investing.com / April 26, 2017 / in.investing.com / Article Link

Investing.com - Gold prices were lower in European trading on Wednesday, edging down for the third straight session as investor sentiment remained skewed toward riskier assets amid optimism surrounding an expected tax reform announcement from U.S. President Donald Trump's administration later in the day.

Comex gold futures shed $2.60, or around 0.2%, to $1,264.65 a troy ounce by 3:00AM ET (07:00GMT), after falling to $1,262.30, a level not seen since April 11. Meanwhile, spot gold was steady at $1,263.45.

The yellow metal lost $10.30 on Tuesday as investors dumped safe-haven assets amid reduced concerns over the French presidential elections.

Also on the Comex, silver futures declined 5.0 cents, or about 0.3% to $17.61 a troy ounce, after touching a five-week low of $17.59 in the prior 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.

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 0.2% to $955.60, while palladium added 0.4% to $799.35 an ounce.

May copper futures dipped 0.3 cents to $2.588 a pound.

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