Investing.com - Gold prices extended losses from the prior session on Thursday to hit their lowest level in around a month, as investors shunned safe-haven assets following the unveiling of a long-awaited tax reform plan stateside.
A highly-anticipated plan to reform taxes in the U.S. was released by Republicans on Wednesday. The framework proposed bringing the corporate tax rate to 20% from 35% and reducing the highest individual income tax rate to 35% from 39.6%.
Investors stateside cheered the tax reform plans, with the U.S. dollar climbing to a one-month high against a basket of currencies, while financial stocks and Treasury yields rose.
Despite market optimism, the proposal still faces an uphill battle in Congress, with the Republican party divided over it and Democrats hostile.
Comex gold futures fell to their lowest level since Aug. 25 at $1,280.40 a troy ounce before bouncing back to $1,283.52 by 2:45AM ET (0645GMT), down $4.20, or around 0.3% from Wednesday's closing price.
The yellow metal lost around 1.1% on Wednesday after upbeat data on durable goods orders helped boost expectations for a Federal Reserve interest rate hike in December.
Interest rate futures are now pricing in about an 80% chance of a December Fed rate hike according to Investing.com's Fed Rate Monitor Tool, up from under 40% just a few weeks ago.
Looking ahead, investors awaited final figures on U.S. second-quarter economic growth later in the day. Comments from soon-to-depart Fed Vice Chair Stanley Fischer will also garner some attention.
Elsewhere on the Comex, silver futures inched down 7.1 cents, or about 0.4%, to $16.75 a troy ounce, their worst level since Aug. 16.
Among other precious metals, platinum dipped 0.4% to $920.85, while palladium slipped 0.4% to $924.55 an ounce.
Platinum fell to a discount against palladium for the first time since 2001, as demand expectations for the two assets diverge, amid waning demand for diesel cars.