Gold prices hold steady with U.S. politics, data in focus

By Investing.com / April 28, 2017 / in.investing.com / Article Link

Investing.com - Gold prices held steady on Friday, as global geopolitical tensions reignited some safe-haven demand, although investors were still eyeing the release of U.S. economic reports later in the day.

On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were little changed at $1,266.36.

The June contract ended Thursday's session 0.13% higher at $1,265.90 an ounce.

Futures were likely to find support at $1,260.70, the low of April 26 and resistance at $1,279.90, the high of April 25.

Market sentiment weakened after U.S. President Donald Trump said he will either renegotiate or terminate a "horrible" trade deal with South Korea.

The comments came shortly after Trump said that there is a chance the U.S. could have a major conflict with North Korea.'

On Wednesday, the U.S. President proposed slashing tax rates for businesses to 15% from the current 35% for public corporations and 39.6% for small businesses, and on overseas corporate profits returned to the country.

Analysts said traders were disappointed by the lack of new details about the tax reform plan and on skepticism that any comprehensive tax changes will be approved by the House and Senate.

Meanwhile, the U.S. Congress began moving to extend Friday's budget deadline until May 5 and is expected to pass legislation allowing more time to finalize a spending deal to fund the federal government through September and avoid a shutdown.

Without the congressional extension or a longer-term funding bill, federal agencies will run out of money by midnight Friday.

Market participants were also looking ahead to the release of reports on U.S. first-quarter growth and consumer sentiment, due later Friday.

Elsewhere in metals trading, silver futures for May delivery gained 0.24% to $17.376 a troy ounce, while copper futures for May delivery added 0.12% to $2.596 a pound.

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