MTECHTIPS;-Gold Slumps to 6-Week Lows as Dollar Firms on Tax Reform Optimism

MTECHTIPS;-Gold Slumps to 6-Week Lows as Dollar Firms on Tax Reform Optimism

MTECHTIPS-Gold prices fell to six-week lows on Tuesday as dollar strength continued on the back of recent investor optimism surrounding tax reform. Gold futures for February delivery on the Comex division of the New York Mercantile Exchange fell by $11.70, or 0.92%, to $1266.00 a troy ounce. Gold prices fell as bullish sentiment in risk markets continued amid growing investor expectations that the Senate and House of Representatives will reconciled their respective bills, ensuring that the final bill will reach President Donald Trump for approval before year-end. Also weighing on the dollar was ongoing expectations that the U.S. Federal Reserve will raise interest rates for third time this year at the conclusion of its next meeting on Dec.13. According to  fed rate monitor 100% of traders expect the Federal Reserve to raise rates in December. Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion 

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