December 20, 2017
PRECIOUS-Gold prices edge up in range-bound trade
(Reuters) - Gold prices inched higher in range-bound trade on Wednesday as the dollar held steady on expectations the U.S. government would pass the country's biggest tax overhaul in 30 years.
Spot gold had risen 0.1 percent to $1,263.20 an ounce by 0804 GMT. U.S. gold futures were up 0.2 percent, at $1,266.6 an ounce.
"Gold is coming up from a cyclical bottom. It's going to get quieter due to the upcoming holiday long-weekends," said Mun Chun Loh, director, Private Wealth at GoldSilver Central Pte Ltd in Singapore.
"All we see is a bit of book positioning in anticipation of adjusting their positions for the next 2-3 weeks ahead."
Spot gold has shed nearly $100 since its Sept. 8 one-year peak of $1,357.54 an ounce and is down 0.8 percent for the month so far.
The dollar was meanwhile supported on Wednesday after the House of Representatives on Tuesday approved the proposed U.S. tax overhaul, though Congressional Republicans will likely need to hold another vote later on Wednesday due to procedural issues.
Investors are monitoring the progress in the tax bill closely and many expect it to have a positive impact on domestic growth.
Outgoing Federal Reserve Chair Janet Yellen last week said while a short-term economic bump from the plan is likely, a longer-term boost is not.
"We see the decline in gold as evidence that "fear" effects, which had been keeping gold supported, have at least partially moderated as US tax reform and the transition to a new Fed chair appear to be going smoothly," Goldman Sachs said in a note.
"We continue to expect gold prices will move lower over the coming months, reaching $1,200/toz by mid-2018," the bank said.
Spot gold has resistance at $1,265 followed by the 200-day moving average at $1,269, Jeffrey Halley, a senior market analyst with OANDA said, adding that immediate support for the metal would come in at $1,261 an ounce.
Silver was down 0.3 percent at $16.08 an ounce, after touching a two-week high in the previous session.
Platinum was nearly unchanged at $913.64 an ounce, having hit a two-week peak of $919.40 on Tuesday.
Palladium was up 0.6 percent at $1,028 an ounce.