Gold To Gain From Weaker USD As Chaos Rules Washington Next Week – Analysts

Gold investors will want to pay more attention to political turmoil in Washington D.C. as this could have more impact on the U.S. dollar and the yellow metal than the Federal Reserve’s interest rate decision.

Analysts have noted that gold is preparing to end Friday at its highest level in three weeks, its second consecutive weekly gain driven by further U.S. dollar weakness. The U.S. Dollar Index is preparing to end the week at its lowest level since in more than a year. August gold last traded at $1,253.40 an ounce, up more than 2% from the previous Friday close. At the same time the U.S. Dollar Index last traded at 94, down more than 1%.

Silver is also ending its second week of positive gains with September silver futures last trading at 16.45 an ounce, up more than 3% from the previous week.

The selloff in the U.S. dollar picked up momentum this week as the U.S. Senate was unable to pass legislation to replace and repeal the Affordable Health Care Act. The failure of the bill has created some doubt as to whether or not Congress will be able to push forward ambitious fiscal proposals including tax reform and deregulation.

Neils Christensen
Friday July 21, 2017