@Gold gains in Asia as Trump probe widens with counsel appointment (18/05/2560)

18 May 2017
177 times

Investing.com - Gold rose in Asia on Thursday after U.S. Justice Department Deputy Attorney General Rod Rosenstein appointed former FBI director Robert Mueller as special counsel to take over the investigation of Russia's alleged interference in the U.S. presidential election. Gold for June delivery on the Comex division of the New York Mercantile Exchange edged up 0.13% to $1,260.29 a troy ounce. Copper futures on the Comex fell 0.24% to $2.538 a pound. Overnight, gold futures soared to a two-week high on Wednesday, as investors poured back into the safe-haven trade, after U.S. political turmoil and a recent batch of downbeat economic data dampened investor appetite for riskier assets. The U.S. political saga continued to dominate market moves for a second-straight day amid reports that President Donald Trump asked the then-FBI Director James Comey to shut down an investigation into the actions of former National Security Advisor Mike Flynn. The latest political saga out of Washington weighed on the dollar, which underpinned a surge in commodities across the board. Dollar-denominated commodities such as gold are sensitive to moves in the dollar – A dip in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand. Elsewhere, gold bugs cheered a tick lower in expectations concerning a June rate hike as recent economic data fell short of expectations. The Commerce Department said Tuesday, housing starts dropped 2.6% to a seasonally adjusted annual rate of 1.17 million units, the lowest level in five months, and below expectations for a 3.7% rise. According to investing.com’s Fed rate monitor tool only 58% of traders expect the Federal Reserve to hike its benchmark rate in June, compared to nearly 70% of traders in the previous week. Source: investing.com (17/05/2017)

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