Gold prices pulled back Wednesday morning, a day after assets perceived as havens attracted bullish bids following U.S. House Speaker Nancy Pelosi’s decision to launch a formal impeachment inquiry against President Donald Trump.
Gold for December delivery
on Comex fell $6.30, or 0.4%, to $1,533.90 an ounce, after it finished at its highest on Tuesday for a most-active contract since Sept. 4, according to FactSet data.
headed 8 cents, or 0.4%, lower to $18.555 an ounce, following a decline of 0.4% lost for gold’s sister metal in the prior session.
Pelosi announced an impeachment inquiry into Trump late Tuesday following a chorus of criticism in the wake of reports the president pressed Ukraine’s president to investigate Democratic presidential candidate Joseph Biden and his son Hunter.
On top of that, Trump turned up pressure on China in a United Nations’s speech as Washington and Beijing seek a trade deal. The U.S. president also called on all countries to act to counter Iran’s regime, which Washington has placed sanctions on.
News reports of the impeachment inquiry were blamed for putting the pressure on stocks late in Tuesday’s session, providing some lift to bonds and gold.
So far this week, political developments in the U.S., along with continuing tensions in the Middle East between Iran and Saudi Arabia, as well as persistent China-U.S. tariff conflicts and worries about slowing global economic growth, all have helped to support gold prices, commodity experts said.
“The impeachment dust over in the US, escalating tensions between the US and China after Trump’s speech, and targeting Iran as a major culprit of the recent incidents which happened over in Saudi Arabia, all of this have all supported the recent move in the gold price.” wrote Naeem Aslam, chief market analyst at ThinkMarkets, in a Wednesday research note.
Analysts said the impeachment inquiry is a potential drag for stocks, though the potential may be limited barring an indication that support for Trump is slipping in the Republican-controlled Senate. A vote by the House to impeach would be followed by a trial in the Senate, which would decide the president’s fate but appears unlikely given that a GOP majority there.
“The upward momentum still looks fairly strong and this means that it is only a matter of time before the price breaks above the $1550 mark,” Aslam wrote.
Trump on Tuesday said a transcript of one of his phone conversations with Ukraine President Volodymyr Zelensky would be declassified and submitted for public consumption sometime Wednesday.