Gold sags in Asia on stronger greenback

Gold sags in Asia on stronger greenback

On Thursday, gold sank in Asia because the evergreen buck demonstrated gains, thus making the precious commodity priced in the US currency more expensive for major buyers, including India and China.

December delivery gold futures tumbled 0.27% in New York being worth $1,248.30 a troy ounce.

Overnight, the precious commodity dived abruptly amid a soar in the greenback on the back of strengthening hopes for a year-end rate lift as well as tax reform.

Hopes rose that tax reform is going to be implemented sooner rather than later backing a move higher in the greenback, putting pressure on gold prices because Republicans in the American Congress as well as the White House disclosed plans to change America’s tax code in a proposal, which cuts taxes on wealthy businesses.

Greenback-denominated assets, including gold appear to be sensitive to moves in the US currency – a soar in the US currency makes gold less affordable for holders of foreign currency, therefore affecting demand.

Similar

Latest news

Japan real wages surge is slowest in almost two years

Japan's March real wages went down at the fastest pace in nearly two years, weighed by minor nominal pay lifts as well as a moderate ascend in consumer prices, thus posing a setback for Prime Minister Shinzo Abe's tries to revitalize the Japanese…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera