Gold prices were little changed in European trading on Thursday, holding near the prior session’s two-week low as investors digested U.S. President Donald Trump’s outline for tax reform.
Comex gold futures tacked on $1.30, or around 0.1%, to $1,265.40 a troy ounce by 3:05AM ET (07:05GMT), pulling back after rising to an overnight high of $1,271.10. Meanwhile, spot gold was at $1,264.15.
The yellow metal settled lower for the third session in a row on Wednesday after hitting its weakest level since April 11 at $1,260.70.
Also on the Comex, silver futures inched up 5.2 cents, or about 0.3% to $17.48 a troy ounce, after touching a six-week low of $17.35 in the prior session.
Trump’s tax plan, unveiled at the White House by Trump economic adviser Gary Cohn and Treasury Secretary Steve Mnuchin on Wednesday afternoon, proposed cutting the income tax rate paid by public corporations to 15% from 35% and reduce the top tax rate assessed on pass-through businesses, including small partnerships and sole proprietorships, to 15% from 39.6%.
The White House added there will be a “one-time tax” on the trillions of dollars held by corporations overseas.
However, the plan drew a cautious welcome from fiscal conservatives and financial markets amid fears that it would make the federal deficit balloon if enacted.
Elsewhere in metals trading, platinum firmed at $948.70, while palladium held steady at $805.00 an ounce.[:]