This week, quite a few interesting things happened. How could they affect the gold market? Wednesday was full of important events, which could have a non-negligible impact on the gold prices. First, it turns out that the Republicans would have enough votes in the U.S. Senate to pass a budget which is key to introducing tax reform. This is because a budget approved by both the Senate and House of Representatives would allow the Republicans to use a reconciliation procedure, which enables to pass tax legislation with a simple majority, rather than the 60 votes normally required. This is bad news for the gold market, as the strengthened odds of introducing tax reform translate into a more bullish stock market and expectations of a more hawkish Fed.
Source: Inside Futures