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Gold Prices Rises as U.S. Dollar Slips; Political Risk in Focus

Published 12/24/2018, 01:57 AM
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Investing.com - Gold prices rose on Monday in Asia while the dollar slipped as investors turned focus to reports of political uncertainties in the U.S.

Gold Futures for February delivery edged up 0.63% to $1,266.6 at 1:55 AM ET (06:55 GMT) on the Comex exchange.

For the week, gold prices gained about 1.4%. Though prices have strengthened in recent months to trade more than 5% higher quarter to date, they have still lost nearly 4% for the year so far.

Reports that President Trump suggested firing Federal Reserve Chair Jerome Powell, a move that could roil already volatile financial markets, provided some support for the safe-haven gold on Monday.

Last week, the U.S. central bank lifted rates for the fourth time this year and kept most of its guidance for additional hikes over the next two years, dashing investor hopes for a more dovish policy outlook.

Separately, U.S. President Donald Trump's budget director and chief of staff told reporters that the partial U.S. government shutdown could continue into January.

Meanwhile, Treasury Secretary Steven Mnuchin urged the heads of the six largest U.S. banks to calm nerves and made plans to convene a group of officials known as the "Plunge Protection Team."

The U.S. Dollar index that tracks the greenback against a basket of other currencies was down 0.2% to 96.290.

Trading volumes remained light as most global markets set to shut for Christmas. Japan’s equity markets were closed for a holiday while Australia closed early.

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