KITCO NEWS - Gold (GLD) - Get SPDR Gold Trust Report prices continue to struggle despite a small bounce in late trading Wednesday after the Trump administration released details on their tax plan. Changes to the U.S. tax rate could affect the yellow metal since a reduction in taxes could fuel further gains in risk assets, like stocks, this according to Long Leaf Trading founder Tim Evans. Speaking with Kitco News, he said he remains positive on gold and silver over the long run, even if the metals have been trading near multi-week lows. June gold futures settled the day lower at $1,264.20 an ounce while May silver settled lower at $17.363. Treasury Secretary Steven Mnuchin confirmed on Wednesday that the White House tax plan will include a 15% corporate tax rate, which is down from the current 35%. To Evans, these downturns in gold and silver prices could provide an opportunity for investors that have little or no positions in the precious metals.
This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.