London — Gold prices rose on Wednesday for a third day, helped by a weaker dollar and falling US bond yields ahead of inflation data later that could influence how quickly the Federal Reserve will raise interest rates. The outlook for US tax cuts that could stimulate economic growth was also clouded after US Senate Republicans created new political obstacles, by linking the repeal of a key component of Obamacare to the tax reform plans. "The biggest factor right now shoring up gold is the weaker dollar," said Robin Bhar, head of metals research at Societe Generale. "Also there’s speculation that tax cuts could be a long time coming, meaning the Fed will not have to be as aggressive as it might have been." A weaker dollar makes gold cheaper for holders of other currencies, which can stimulate demand, while lower bond yields make gold more attractive by reducing the opportunity cost of owning nonyielding bullion. Higher interest rates, meanwhile, push bond yields higher and tend to bo...
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