Investing.com - Gold prices rose on Friday boosted by a weaker dollar which was hit by doubts over whether Republicans can pass a historic tax overhaul.
Gold futures for December delivery settled up 1.27% at $1,294.41 on the Comex division of the New York Mercantile Exchange - the highest close in a month.
For the week, gold prices ended up 1.75%, its strongest weekly performance since early October.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% to 93.61 in late trade. For the week, the index was down 0.74%, its second consecutive weekly decline.
The House of Representatives on Thursday passed a bill that would lower corporate taxes and cut individual taxes for most households in 2018, in a step towards the biggest U.S. tax code overhaul since the 1980s.
But the legislation may face a tougher fight in the Senate amid resistance within Republican ranks. Senate lawmakers are expected to vote on their version of the bill after this week’s Thanksgiving holiday.
The dollar was also pressured lower by news reports that special counsel Robert Mueller’s investigators probing possible Russian interference in the 2016 U.S. election had subpoenaed President Donald Trump’s campaign requesting documents.
The reports added to concerns that the probe will hinder the Trump administration’s ability to pass tax reform or other fiscal reform measures that would support the economy.
A weaker dollar tends to support gold, which is priced in the U.S. currency and becomes less affordable to foreign buyers when the dollar appreciates.
Elsewhere in precious metals trading, silver followed gold higher and was up 1.34% at $17.30 a troy ounce late Friday, while platinum settled at $953.95, up 1.9% for the day.
Among base metals, copper was up 0.69% at $3.069 in late trade. The industrial metal has pulled back around 6% from the three-year highs hit in late October, amid concerns about demand from China, the world’s largest consumer. Copper is still up more than 20% for the year.
In the coming week, investors will be focused on Wednesday’s Federal Reserve meeting minutes for fresh clues on the likely trajectory of monetary policy.
U.S. data on durable goods orders will also be closely watched in this holiday-shortened week. Markets stateside will remain closed on Thursday for the Thanksgiving holiday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, November 20
European Central Bank President Mario Draghi is to testify on the economy and monetary policy in the European Parliament in Brussels.
Tuesday, November 21
The Reserve Bank of Australia is to publish the minutes of its latest policy setting meeting.
The UK is to release data on public sector borrowing. Later in the day, Bank of England Governor Mark Carney is to appear before the Treasury Select Committee, in London.
Canada is to release data on wholesale sales.
The U.S. is to publish a report on existing home sales.
Fed Chair Janet Yellen is to deliver remarks at a panel discussion in New York.
Wednesday, November 22
The UK government is to announce its annual budget.
The U.S. is to release data on durable goods orders and unemployment claims. Later in the day, the Fed is to publish the minutes of its latest policy setting meeting.
New Zealand is to release data on retail sales.
Thursday, November 23
Financial markets in Japan will be closed for a holiday.
The euro zone is to release data on manufacturing and service sector activity.
The UK is to produce revised data on third quarter economic growth.
The ECB is to publish the minutes of its latest policy setting meeting.
Financial markets in the U.S. will be closed for the Thanksgiving holiday.
Canada is to report on retail sales.
Swiss National Bank Chairman Thomas Jordan is to speak at an event in Basel.
Friday, November 24
New Zealand is to release data on the trade balance.
The Ifo Institute is to report on German business climate.