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Tax uncertainty weighs on global markets

Uncertainty surrounding proposed US tax changes has weighed on global markets and helped send the gold price to a one-month high of US$1,297.50 an ounce on Friday.
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Gold equities boosted by tax uncertainty

Staff reporter

It was still trading above $1,290/oz earlier today.

In Toronto, both Barrick Gold (CN:ABX) and Goldcorp (CN:G) closed up more than 1% on Friday to C$17.96 and C$17.10 respectively.

Gold miner AngloGold Ashanti (AU:AGG) was up 3.1% at market close in Australia, while diversified major BHP (AU:BHP) was unchanged and Rio Tinto (AU:RIO) closed down about 0.1%.

European markets are yet to fully respond to coalition talks failing in Germany over the weekend, which has thrown the country into political turmoil.

In Australia, the benchmark S&P/ASX200 today followed the lead of key indices that finished slightly lower on Friday, with the FTSE 100 down 0.08% and the S&P500 down 0.26% in the US, closing 0.2% lower.

Nickel miner Western Areas made a positive move, gaining 2.62% after the nickel price rose 2% on Friday on the London Metal Exchange.

Meanwhile, analysts await the release on Wednesday of the minutes from the US Federal Reserve's latest policy meeting, which is expected to provide a better indication of the likelihood of an interest rate rise in December.