Investing.com – Gold prices edged higher on Monday, as the U.S. dollar pulled back despite mounting hopes that a major U.S. tax reform can be passed before the end of the year.
Comex were up $2.10 or about 0.16% at $1,259.70 a troy ounce by 03:00 a.m. ET (07:00 GMT), just off Friday’s one-and-a-half week high of $1,264.50 hit.
The greenback was initially lifted after Republicans on Friday on a sweeping tax overhaul bill.
They are confident Congress will now pass the tax bill this week, with a Senate vote planned as early as Tuesday.
The precious metal had strengthened last week after the Fed raised interest rates by 0.25 basis points to but did not change its projections for 2018.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 93.32.
Gold is sensitive to moves in both U.S. rates and the dollar. A stroner dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, added 0.32% to $16.12 a troy ounce.
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Source: Investing.com
