Gold Trims Weekly Losses On DC Intrigue

Gold futures rose Friday amid concerns that the Trump Administration’s pro-growth economic agenda will be derailed by a widening investigation about the president’s ties to Russia.

Reports said former National Security Adviser Michael Flynn has agreed to cooperate with prosecutors in the investigation of Russian meddling in last year’s election.

A report from ABC News said Flynn is prepared to testify that then-candidate Donald Trump directed him to make contact with the Russians.

Meanwhile, lawmakers are haggling over a tax reform plan that would likely drive economic growth in the short-term.

Feb. gold settled at $1,282.30/oz, up $5.60, or 0.4%. However, gold was down 0.7% for the week.

The weekly loss was due to speculation the Federal Reserve will raise interest rates in December.

Echoing recent remarks from other central bankers, New York Fed President William Dudley said a December rate hike was reasonable. He also opened the door to further rate hikes in 2018.

“Let’s imagine that I had three rate increases pencilled in for 2018. I’m not wed to that in any way. We could do more. We could do less,” he told the Wall Street Journal.

The material has been provided by InstaForex Company –

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