WASHINGTON (Reuters) – Gold futures prices kept gains on Monday as continuing uncertainty over the fate of a huge US tax reform bill continued to reduce demand for the dollar.
Comex gold futures were up $3.75 or about 0.29% at $1,277.80 a troy ounce.
MCX Gold futures were up 0.05 per cent, or Rs 15, at Rs 29,506 per 10 gram in morning deals.
Senate Republicans unveiled a tax plan on Thursday different from the Republicans’ plan in the House of Representatives, highlighting the challenges of reconciling the differences between the two plans shortly before the deadline at the end of the year they set for passage.
The hopes of tax reform helped boost the dollar since mid-September. Some traders believe that tax reforms can boost growth, adding pressure on the Federal Reserve to raise interest rates, known as the Tramplaton trade.
Experts told, Gold prices are expected to rise as weakness in global equities will be supportive. Concerns about the delay in the US government’s fiscal performance and the weakness of the dollar index will also be a positive factor.
It stabilized the dollar index, which measures the strength of the dollar against a basket of six major currencies at 94.32, down from its lowest level in a week Friday at 94.16.
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