The gold price recovers after the proposal that would reform the tax policy in the U.S on the Republican side had the green light in the House of Representatives.
Although gold prices had dropped two weeks in a row, they closed with a slight rise on Thursday, after the Republicans in the House of Representatives unveiled a bill to reform the tax code of the United States, this was confirmed by the financial information service of Thomson Reuters.
Banks, monetary funds, and investors were also focused on the nomination of the new FED chief, Jerome Powell, according to what Reuters reported. According to the goal of the LBMA negotiation, the price of the ingot marked in today’s journey $1,279.20 the fine troy ounce, 0.168% higher than the closing of November 1st.
The proposal of the Republican Party, according to analysts, is to reduce taxes to the corporations from 35.0% up to 20.0%; as well as to be cutting the tributary sections for natural persons and families to four from the original seven: 12%, 25%, 35% and 39.6%.
On the other hand, the dollar dropped in the journey before the possibility of a fiscal adjustment and the yield of bonds to ten years went down to minimums of two weeks after the news of the Republican initiative which it was part of the package of electoral promises of president Trump.
A loss in the returns of the debt makes gold more attractive, that does not earn interests, whereas the weakness of the dollar makes the ingot cheaper for possesors of other currencies, explained one of the consulted sources.
At the moment, and according to a pool of the analytics tool Fedwatch of CME Group, the markets are considering a probability of 97.0% of a rise of interest rates in the meeting of the FED Committee of Monetary Policy in December; however, according to the tool, the consulted analysts have less certainties on the rate of rises for next year.
That rate could be accelerated if a legislation of tributary reform is promulgated and if that law managed to push the economic growth, clarified the consulted source.
Thomson Reuters reviewed other precious metals from the New York market: silver lost 0.2% at $17.09 the ounce after reaching $17.24, a peak since October 20th. Platinum yielded 1.1% at $921 the ounce and palladium fell 0.7% at $994.75 the ounce.
Gold in cash raised a 0.17% at $1,276.12 the ounce, after reaching $1,281.43 the ounce, the highest level since October 26th; while gold futures in the United States was losing 0.05% at $ 1,276.6 the ounce.