Biden's Tax Statement Raised Gold Prices

Biden's tax statement raised gold prices. US President Biden's tax plan for the rich worked for gold.

The news that US President Joe Biden is preparing to tax the rich, increasing capital gains, contributed to the decline in the US dollar while adding value to the precious metal. The ounce of gold, which tested above $ 1,795 on the last trading day of the week, signaled to complete the third week with gain. US unemployment pension claims announced on Thursday increased risk appetite for risky assets, bringing exits from safe-haven precious metals. Applications for unemployment benefits in the USA recorded the lowest level seen during the epidemic last week. According to the data released by the US Department of Labor, applications for unemployment benefits were 547 thousand with a 39 thousand decrease in the week ending on April 17. This is the first time since March 2020, applications came under 700,000 for two consecutive weeks. The median estimate of the economists who participated in Bloomberg's survey was that the data was 610 thousand.

Biden's Tax Plans Guided the Market

According to sources close to the subject speaking to Bloomberg, Biden will propose increasing the capital gains tax rate by almost doubling to 39.6 percent. This rate, combined with an existing additional tax on investment income, means that federal tax rates for investors can reach up to 43.4 percent. Since the plan has not yet been made public, anonymous sources said the plan will increase the capital gain rate to 39.6 percent for those who earn $ 1 million or more, while the current base rate will be increased to 20 percent.