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PRECIOUS-Gold down but lingers near 3-wk high amid U.S. tax concerns
November 10, 2017 / 9:38 AM / 10 days ago

PRECIOUS-Gold down but lingers near 3-wk high amid U.S. tax concerns

    * Spot gold may edge up to resistance at $1,292/oz
-technicals
    * Palladium eases off multi-year peak hit on Thursday
    * Gold, silver on track for first weekly gains in four

 (Recasts, adds analyst quote, updates prices)
    By Vijaykumar Vedala and Arpan Varghese
    Nov 10 (Reuters) - Gold eased on Friday on a firmer dollar
but uncertainty over U.S. tax reforms helped prices stay close
to a three-week high touched in the previous session. 
    Bullion was on track for its first weekly gain in about a
month. 
    Spot gold        was down 0.1 percent at $1,283.61 per ounce
as of 0856 GMT, although it was headed for a gain of more than 1
percent for the week. On Thursday, it touched its highest since
Oct. 20 at $1,288.34 an ounce. 
    U.S. gold futures         for December delivery were down
0.3 percent at $1,284.20. 
    "Gold has struggled to gain any momentum this week despite
the U.S. tax reform hitting a few hurdles," said Ole Hansen,
head of commodity strategy at Denmark's Saxo Bank. A slightly
stronger dollar has weighed on prices on Friday, he said. 
    The dollar index, which weighs the greenback versus a basket
of major currencies       , was up 0.1 percent, though still on
track for a weekly loss, pressured by developments surrounding
the tax bill put forth by U.S. Senate Republicans.       
    The Senate tax plan differed from a U.S. House of
Representatives' version on several key fronts, including how
they treat the corporate tax rate, the tax deduction for state
and local taxes, and the estate tax.             
    "Further political uncertainty in the U.S. saw gold prices
well supported. News that the Republican tax plan involved cuts
being delayed until 2019 raised the ire of investors," ANZ said
in a note. 
    The appointment of Jerome Powell as the new U.S. Federal
Reserve chair has watered down expectations of a more hawkish
stance from the central bank, and that is supportive of gold,
said Mark To, head of research at Hong Kong's Wing Fung
Financial Group.
    "Overall though, the picture (for gold) is range-bound
trading without much changes," To said. 
    Spot gold may edge up to a resistance at $1,292 per ounce, a
break above which could lead to a gain to $1,299, according to
Reuters technical analyst Wang Tao.                
     In other precious metals, palladium        slipped 0.1
percent at $1,010.50 an ounce after touching its highest since
2001 at $1,026.10 on Thursday. It was up about 1.4 percent for
the week. 
    Silver        rose 0.1 percent to $17.01 per ounce. It has
gained 1.1 percent for the week and is on track for its first
weekly rise in four. 
    Platinum        was down 0.2 percent at $935 an ounce after
hitting a near four-week high of $939.30 on Thursday. It rose
about 1.6 percent for the week. 

 (Reporting by Vijaykumar Vedala and Arpan Varghese in
BENGALURU; Editing by Richard Pullin and Tom Hogue)
  

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