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Gold pushes higher as healthcare vote delay weighs on dollar, stocks

Published 28/06/2017, 08:05
© Reuters.  Gold pushes higher
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Investing.com - Gold prices edged higher in European trade on Wednesday, as the U.S. dollar and global stock markets pulled back, boosting the appeal of the yellow metal.

Comex gold futures were at $1,252.52 a troy ounce by 3:05AM ET (0705GMT), up $5.55, or around 0.5%. Gold edged higher Tuesday to notch its fourth gain in five sessions.

Also on the Comex, silver futures ticked up 17.7 cents, or roughly 1.1%, to $16.76 a troy ounce.

The dollar nursed its losses, having come under pressure overnight after U.S. Senate Majority Leader Mitch McConnell delayed a vote on healthcare legislation until after the Senate's July 4 recess, hoping to get more support from Republican senators.

Market participants are concerned that the Trump administration will find it hard to follow through with tax cuts and fiscal stimulus steps, without first getting the healthcare bill passed.

The dollar index, which measures the greenback against a basket of six major currencies, was 96.09 in early trade, after falling to its lowest since November at 95.92 in overnight trade.

Meanwhile, European and Asian stock markets slumped in wake of a downbeat performance on Wall Street overnight, where shares fell across the board with the benchmark S&P 500 posting its biggest one-day drop in about six weeks.

Among other precious metals, platinum held steady at $920.70, while palladium firmed at $859.52 an ounce.

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