What U.S. Tax Reform Delay Could Mean For Gold - 18 Apr 2017
GOLD: What U.S. Tax Reform Delay Could Mean For Gold
Treasury Secretary Steven Mnuchin said that President Donald Trump's tax reform could be delayed and not make it through Congress before August due to setbacks with the healthcare bill, the Financial Times recently reported.
What U.S. Tax Reform Delay Could Mean For GoldAnd, according to one analyst interviewed by Kitco News, a significant delay in carrying out Trump's tax reform promise could boost gold, which is known for its safe-haven appeal.
Mnuchin made the comments in an interview published by the Financial Times on Monday, describing the August deadline for the massive tax reform bill as “highly aggressive [and] not realistic at this point.”
“It is fair to say it is probably delayed a bit because of the healthcare,” he said. Trump’s administration will still try to pass an overhaul of the tax code in 2017, Mnuchin added.
To BMO Capital Markets, a major delay could help gold, but the gains would be limited.
“Confirmation from the Trump administration that tax reforms will be delayed could provide a slight bump to gold prices (reflecting a loss of confidence in the U.S. economy over the near term),” Sarah Howcroft, economist at BMO Capital Markets, told Kitco News in a phone interview on Monday afternoon.
COPPER: Capstone Mining reported production result in the first quarter of 2017 and copper output totaled 20,900 tonnes, including 11,300 tonnes at Pinto Valley mine.
“The flood in late January slashed capacity at Pinto Valley mine”, the company said.However, Capstone Mining holds output anticipation at 94,000 tonnes unchanged in 2017.
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