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REFILE-PRECIOUS-Gold steady near three-week high amid U.S. tax reform concerns
November 10, 2017 / 4:57 AM / 11 days ago

REFILE-PRECIOUS-Gold steady near three-week high amid U.S. tax reform concerns

 (Corrects dateline to Nov. 10, not Nov. 9)
    * 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

    By Vijaykumar Vedala
    Nov 10 (Reuters) - Gold prices on Friday held near a
three-week high touched in the previous session, underpinned by
uncertainty over U.S. tax reforms and on track for the first
weekly rise in four weeks.
    Spot gold        was nearly unchanged at $1,285.28 per ounce
as of 0435 GMT, and 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
0.1 percent at $1,285.80.
    "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. 
    U.S. Senate Republicans unveiled a tax plan on Thursday that
differed from the 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.
            
    Gold is often used as an alternative investment during times
of political and financial uncertainty.
    The slower than expected pacing of interest rate hikes by
the U.S. Federal Reserve is supporting gold, said Mark To, head
of research at Hong Kong's Wing Fung Financial Group.
    The appointment of Jerome Powell as the new Fed chair has
watered down expectations of a more hawkish stance from the
central bank, he added.
    "Overall though, the picture (for gold) is range-bound
trading without much changes." 
     Higher interest rates tend to boost the dollar, putting
pressure on gold prices by increasing the opportunity cost of
holding non-yielding bullion.
     The dollar was on track for weekly losses after dropping on
disappointment with the tax bill put forth by U.S. Senate
Republicans that would delay expected corporate tax cuts.       
     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 0.4
percent at $1,006.50 an ounce after touching its highest since
2001 at $1,026.10 on Thursday. It was up about 1.1 percent for
the week. 
    Silver        rose 0.1 percent to $17.016 per ounce. It has
gained 1.1 percent for the week and is on track for its first
weekly rise in four weeks. 
    Platinum was down 0.2 percent at $935.40 an ounce and was up
1.8 percent for the week.

 (Reporting by Vijaykumar Vedala and Arpan Varghese in
Bengaluru; Editing by Richard Pullin)
  

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