Gold price Inches Higher On US Political Uncertainty

December 24, 2018

New York (Dec 24)  Gold prices inched higher on Monday as a partial US government shutdown over President Trump's demand for more funds for a wall on the border with Mexico dented investors' risk appetite, ahead of the Christmas break.

The partial US government shutdown is expected to continue into January, when the new Congress convenes and Democrats take over the House of Representatives.

Spot gold rose half a % to USD1,259.86 per ounce while US gold futures were up 0.4% at USD1,263.25 per ounce.

Trade worries also returned to the fore after White House trade advisor Peter Navarro said that the trade war between the US and China would not come to an end in near-term.

Meanwhile, Treasury Secretary Steven Mnuchin moved to quell firestorm over repeated attacks on the Federal Reserve, saying that Trump is opposed to the Fed's rate hike campaign, but has never suggested firing Board Chairman Jerome Powell.

After calling the bank CEOs on Sunday in an apparent attempt to check on system liquidity, Mnuchin will chair a meeting of the President's Working Group on Financial Markets later today.


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