Yahoo Finance Gold Gains In Asia On Harker Comments, Risk From Possible Challenge To Theresa May
Investing.com - Gold gained in Asia on Monday as Philadelphia Federal Reserve Bank President Patrick Harker on Monday said the U.S. central bank did not have to remove a lot of monetary policy accommodation before it returned to a neutral stance.
Harker, speaking to reporters on the sidelines of a seminar in Tokyo, reiterated his view that he expected the Fed to raise interest rates next month and three times next year, but said the path to higher interest rates would be gradual.
Gold futures for December delivery settled rose 0.17% to $1,276.35 on the Comex division of the New York Mercantile Exchange, the lowest level since November 7. As well, risk was cited from a reported effort to challenge British PM Theresa May's leadership.
Inflation readings will matter most for global financial markets, with the U.S., UK, euro zone and Canada all set to release CPI data.
Investors will also be focusing on the Central Bank Communications Conference hosted by the ECB, with a panel discussion including the heads of the European, U.S., British and Japanese central banks in the spotlight.
Last week, gold prices fell sharply on Friday as a large sell order with an unclear catalyst jolted the market ahead of the weekend.
Prices of the precious metal rose to a three-week high on Thursday amid increased geopolitical risks, particularly in the Middle East.
The selloff in gold coincided with a move lower in the dollar, which was hit by growing doubts over whether Republicans will be able to push through their tax overhaul this year.
A stronger dollar tends to weigh on gold, which is priced in the U.S. currency and becomes less affordable to foreign buyers when the dollar appreciates.
Senate Republicans unveiled a tax plan on Thursday that differed from the one crafted by House Republicans, highlighting the challenges to reconciling the differences between the two plans with just a short time before the year-end deadline they have set to pass it.
Hopes of tax reform have helped boost the dollar since mid-September. Some traders believe tax reforms could bolster growth, adding pressure on the Federal Reserve to raise interest rates, known as the "Trumpflation" trade.
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