December 20, 2017 / 4:33 AM / a month ago

PRECIOUS-Gold prices edge up in quiet trade

    * Dollar supported by tax overhaul hopes
    * Gold has resistance at $1,265/oz -analyst

 (Adds comment, updates prices)
    By Apeksha Nair
    Dec 20 (Reuters) - Gold prices inched higher in quiet 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 0.2 percent to $1,263.65 an ounce
by 0347 GMT. U.S. gold futures         were also up 0.2 percent,
at $1,267 an ounce. 
    "There is no news driving this other than perhaps some
risk-aversion as Bitcoin fell by 10 percent overnight," said
Jeffrey Halley, a senior market analyst with OANDA.
    Digital currency Bitcoin was down 5 percent on the Bitstamp
exchange at $16,810           , after earlier dropping to a
one-week low at $15,800.
    "Gold has resistance at $1,265 followed by the 200-day
moving average at $1,269," Halley said, adding that immediate
support for the metal would come in at $1,261 an ounce.
    Meanwhile, the dollar was supported 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.
                     
    "The better-than-expected housing data in the U.S. weighed
on investor appetite. A lack of safe-haven buying, as well as
stronger equity markets have been a major factor behind the
lacklustre performance in recent weeks," ANZ analysts said in a
note.
    Upbeat U.S. housing data and the House's approval of the tax
overhaul boosted U.S. Treasury yields.                     
    "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."        
    Silver        was up 0.1 percent at $16.13 an ounce, after
touching a two-week high of $16.22 in the previous session.
    Platinum        was nearly unchanged at $913.40 an ounce,
having hit a two-week peak of $919.40 on Tuesday.
    Palladium        was up 0.1 percent at $1,021.65 an ounce.  
 

 (Reporting by Apeksha Nair in Bengaluru; Editing by Amrutha
Gayathri and Joseph Radford)
  
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