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Gold Posts Fourth Straight Weekly Gain

February 24, 2017 at 17:47 by Andrew Moran

Gold prices are climbing on the final trading day of the week, and are set to posted their fourth consecutive weekly gain. Amid US and European political worries and a sliding greenback, investor appetite for the yellow metal has become fierce even as the Federal Reserve plans to raise interest rates.

April gold futures rose $6.29, or 0.50%, to $1,257.70 per ounce at 16:17 GMT on Friday. The yellow metal is poised to settle at its highest level since November 10. Gold will also record its fourth straight weekly gain with an increase of 1.5%.

Silver is also doing well to finish the trading week. March silver futures increased $0.24, or 1.34%, to $18.36 an ounce. Silver is set to record its ninth straight weekly gain with an advance of 1.3%.

Year-to-date, gold is up nearly 8% and silver is up about 10%.

The gains in gold and silver stem from a lower US dollar which shed 0.2% on Friday. The dollar’s decline was due to US Treasury Secretary Steven Mnuchin reporting that President Donald Trump‘s tax plan would be installed at a slower-than-expected pace. Also, the details of the president’s tax plan have yet to be announced. Mnuchin confirmed that it would be revealed in August.

We want to get this done by the August recess. We [have] been working closely with the leadership in the House and the Senate and we [are] looking at a combined plan.

According to the CME Group FedWatch tool, there is a 22% chance of the US central bank raising rates. A majority of analysts expect the Fed to pull the trigger on the next rate hike in May. Gold is sensitive to rising rates because it lifts the opportunity cost and sends traders into yield-bearing assets.

Over in Europe, Marine Le Pen, leader of France’s National Front, is gaining ground in the polls. Holland’s Geert Wilders is also maintaining his momentum as he is tied in first place. Both leaders have been ardent critics of the European Union (EU) and the bloc’s open borders policy, which have been major campaign issues.

If you have any questions and comments on the commodities today, use the form below to reply.

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