Gold prices surged today as commodities seemed to gain traction against a weakening US dollar.
The 6th Circuit Court of Appeals has stayed the Environmental Protection Agency‘s new water rules in all 50 states, giving a reprieve to manufacturers until the full court hears arguments over the legality of the new rules.
Gold Climbs, Dollar Falls
Gold jumped to a 3-month high today bolstered by a weaker dollar and expectations the Federal Reserve will not hike interest rates this year. The dollar hovered near a 3-week low versus a basket of major currencies, anchored by doubts that the Fed will raise interest rates by the year’s end.
Spot gold reached a peak of $1,169 an ounce and was up 0.6% at $1,163.96 an ounce at 1401 GMT, although it has retreated a bit since. US gold futures for December delivery were up $8.40 an ounce at $1,164.50.
Appeals Court Stays New EPA Water Rules
A federal appeals court on Friday temporarily blocked an Environmental Protection Agency regulation that would bring more waterways and wetlands under federal protection, in a sign the effort could face an uphill legal battle.
The order, issued on a 2-1 vote from the Cincinnati-based 6th US Circuit Court of Appeals, was a preliminary boost for a group of 18 states that challenged the EPA regulation. The rule seeks to bring smaller bodies of water at the outer edges of watersheds under the Clean Water Act and was issued jointly with the US Army Corps of Engineers.
“A stay temporarily silences the whirlwind of confusion that springs from uncertainty about the requirements of the new rule and whether they will survive legal testing,” wrote the majority of the 3-judge appeals court panel.
The court said the challengers had demonstrated “a substantial possibility of success” in winning the case. Manufacturers, who would be subject to more stringent regulations under the plan, applauded the decision.