Investing.com – Gold held onto gains on Monday, as ongoing uncertainty over the fate of a major U.S. tax reform bill continued to dampen demand for the dollar.
Comex were up $3.75 or about 0.29% at $1,277.80 a troy ounce by 08:25 a.m. ET (12:25 GMT).
Senate Republicans unveiled a tax plan on Thursday that differed from the one crafted by House Republicans, to reconciling the differences between the two plans with just a short time before the year-end deadline they have set to pass it.
Hopes of tax reform have helped boost the dollar since mid-September. Some traders believe tax reforms could bolster growth, adding pressure on the Federal Reserve to raise interest rates, known as the “Trumpflation” trade.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.32, just off Friday’s one-week low of 94.16.
Market players were also eyeing a number of U.S. economic reports due throughout the week and especially Wednesday’s , for fresh clues on the Federal Reserve’s next policy moves.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger 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, were little changed at $16.87 a troy ounce.
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Source: Investing.com
