Gold prices fell below $1230 per ounce in London trade Tuesday morning, losing 1% from last week’s finish as US traders returned from the President’s Day holiday focused on how Donald Trump and rising inflation could see the Federal Reserve raise interest rates again as early as March.
Asian and European stock markets edged higher while bond prices fell, nudging up longer-term interest rates.
Silver tracked the drop in gold prices, bouncing off 1-week lows at $17.85 per ounce.
Major indexes of commodity prices rose but held shy of January’s 18-month highs.
After optimism amongst US businesses leapt at a record pace following Donald Trump’s White House victory, the bosses of major employers including GE and Boeing are now urging the new president to “revamp” America’s tax code, reports the Financial Times, in what some call a once-in-30-years opportunity.
With the US economy already near “full employment”, the January Consumer Price Index put annual inflation at it fastest pace in 5 years, above the Fed’s 2.0% target.
This post was published at FinancialSense on 02/21/2017.