Gold Prices Hold Onto Gains on Softer Dollar
Investing.com - Gold prices held onto gains on Tuesday, as sentiment on the U.S. dollar remained fragile amid ongoing uncertainty over the fate of a U.S. tax bill and ahead of the minutes of the Federal Reserve's policy meeting due on Wednesday.
Comex gold futures were up $3.47 or about 0.27% at $1,278.78 a troy ounce by 08:15 a.m. ET (12:15 GMT).
The House of Representatives passed a bill last week that would lower corporate taxes and cut individual taxes for most households in 2018.
However the legislation could still face difficulties in the Senate amid resistance within Republican ranks. Senate lawmakers are expected to vote on their version of the bill after this week’s Thanksgiving holiday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 94.01.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Minutes of the Fed's most recent policy meeting, expected on Wednesday, could offer clues on the pace of potential interest rate hikes by the central bank.
Markets participants were also eyeing a speech by Fed Chair Janet Yellen in New York on Tuesday evening for any clues on interest rates.
Yellen said on Monday she would resign her seat on the Fed's Board of Governors once Jerome Powell is confirmed and sworn in to replace her as head of the U.S. central bank.
Elsewhere on the Comex, silver futures were up 0.79% at $16.98 a troy ounce.
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