Morning Snapshot: Gold underpinned, shrugging off dollar gains
Gold continues to consolidate near the high end of this year’s range, shrugging-off further gains in the dollar. Clearly, political and geopolitical risks continue to underpin the yellow metal.
U.S., South Korean and Japanese warplanes staged a live-fire bombing exercise on the Korean Peninsula yesterday. It was a direct response to North Korea’s missile launch that flew over Japan earlier this week. The sabers continue to be rattled.
President Trump attempted to reinvigorate the push for tax cuts and tax reform before year-end. Emphasis seems to be on a corporate tax cut, but apparently the President is going to leave the details to Congress.
Congress is going to have a full slate when they return next week from the month-long summer recess. And everything is going to be hotly contended, with default and a government shutdown hanging in the balance.