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PRECIOUS-Gold up as dollar slips on possible delay in U.S. tax cut plan
November 8, 2017 / 5:24 AM / 15 days ago

PRECIOUS-Gold up as dollar slips on possible delay in U.S. tax cut plan

    * Spot gold neutral in $1,263-$1,281 range- technicals
    * GRAPHIC-Gold/silver ratio: tmsnrt.rs/1UXSq7n
    * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl

 (Updates prices, adds technical analyst's view, oil moves)
    By Vijaykumar Vedala
    Nov 8 (Reuters) - Gold prices nudged higher on Wednesday, as
the dollar slipped following a media report that suggested a
delay in the implementation of a major corporate tax cut under a
crucial U.S. tax reforms plan. 
    Spot gold        was up 0.2 percent at $1,278.43 per ounce
as of 0805 GMT. It fell about 0.5 percent on Tuesday.
    U.S. gold futures         for December delivery gained 0.3
percent to $1,279 an ounce.
    Senate Republican leaders are considering a one-year delay
in implementing the centrepiece tax cut to comply with Senate
rules, the Washington Post reported on Tuesday, citing
unidentified sources.        
    Republicans, who hold a slim majority in the U.S. House of
Representatives, forged ahead on Tuesday with legislation to
reshape the U.S. tax code, which the Democrats have blasted as a
give-away to corporations and the rich.              
    Senate Republicans are expected to unveil their own tax bill
at the end of the week, and early indications suggest it could
differ significantly from the House legislation.   
    "Gold began on the front foot this morning with the dollar
sold off aggressively...," MKS PAMP trader Alex Thorndike said
in a note.
    The dollar index       , which measures the greenback
against a basket of six currencies, fell 0.1 percent. 
    "$1,280-85 remains the ceiling for now and it will be
interesting to see whether this Washington Post article can
generate some upward momentum today in Europe and New York,"
Thorndike said. 
    An anti-graft purge in Saudi Arabia and U.S. President
Donald Trump's visit to South Korea amid tensions with the North
 could boost prices of the yellow metal, analysts said. 
    "While the fundamentals are showing that gold prices should
fall into 2018, these geopolitical events could cloud the
fundamentals," OCBC analyst Barnabas Gan said.   
    Trump said on Wednesday the United States would defend
itself and its allies against Pyongyang's nuclear threat,
warning its leader that nuclear weapons it is developing "are
not making you safer, they are putting your regime in grave
danger".             
    Saudi Arabia's anti-corruption campaign, led by Crown Prince
Mohammed bin Salman, is being seen by critics as a populist
power grab, but as an overdue attack on the sleaze of a moneyed
ultra-elite by ordinary Saudis.                            
    "The fact that oil has now broken out on the charts bodes
well for further gains and gold could get pulled up with crude,"
said INTL FCStone analyst Edward Meir.
    Oil prices fell on Wednesday although traders said the
overall market remains well supported. Benchmark Brent crude
        rose to an over two-year high of $64.65 earlier this
week.      
    Spot gold has turned neutral in the $1,263-$1,281 range,
following its failure to break a resistance at $1,281 per ounce,
according to Reuters technical analyst Wang Tao.                
    
    In other precious metals, silver        rose 0.4 percent to
$17.02 an ounce. Platinum        was up 0.5 percent at $927.30
an ounce, while palladium        gained 0.3 percent to $995.70
per ounce.

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by Biju
Dwarakanath)
  

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