Los Angeles CA, December 7, (Tangible Investments) — by James O’Dell — Precious metals prices were mixed on Thursday as optimism over tax plan weighs on Gold. Gold is down 0.78 percent to $1,253.00 an ounce after easing $3.10 on Wednesday to close at $1,262.80 an ounce.
Silver is down 1.13 percent to $15.74 an ounce after easing $0.15 on Wednesday to close at $15.92 an ounce. The Gold/Silver ratio rose to 79.32. Platinum is down 0.33 percent to $896.00 an ounce. Palladium is up 2.03 percent to $1,006.00 an ounce.
Gold hit 4-month lows in early trading Thursday as the dollar strengthened on optimism over passage of the tax plan. The Senate agreed on Wednesday to discussions with the House of Representatives on the tax bill, raising lawmakers’ hopes for an agreement before the Dec. 22 deadline.
“We’ve had a (breakdown) of support at $1,260, which is a key level,” said ActivTrades’ Carlo Alberto de Casa. “From a technical point of view, many traders had stop-losses just below $1,262, and today the market is going down for this reason.”
The stronger dollar together with technical factors have Gold under pressure, but according to Afshin Nabavi, of MKS (Switzerland) SA, Gold could gain support from President Trump’s decision to recognize Jerusalem as the capital of Israel.
Nabavi calls President Trump’s decision “very, very, very dangerous for the Middle East region.” Hamas is already urging Palestinians to protest the decision. “Overall, I would prefer to buy on dips myself, rather than sell on rallies,” says Nabavi. The move will see demand for safe-haven Gold in the region soar.
Lawmakers Meet With President Trump
Meanwhile, lawmakers are set to meet with President Trump at the White House Thursday for discussions about a temporary spending bill. House Republicans introduced a bill that would fund the government through Dec. 22 and reportedly keep spending at current levels. Friday’s Jobs Report and the Federal Open Market Committee (FOMC) meeting next week will help determine short term direction of Gold, but Geopolitical turmoil continues to underpin the yellow metal.
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