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Gold Prices Steady Near 2-1/2 Week Highs on Softer Dollar

Published 21/12/2017, 08:01
© Reuters.  Gold prices remain supported as sentiment on greenback is still fragile
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Investing.com - Gold prices were hovering near two-and-a-half week highs on Thursday, as sentiment on the greenback remained vulnerable despite the vote of a major U.S. tax reform bill and ahead of a string of U.S. economic reports due later in the day.

Trading volumes were expected to become more and more thin throughout the week, ahead of the Christmas holiday.

Comex gold futures were little changed at $1,268.70 a troy ounce by 03:00 a.m. ET (07:00 GMT), close to Wednesday's two-and-a-half week high of $1,271.80.

The House of Representatives gave final approval on Wednesday to the biggest U.S. tax overhaul in 30 years, marking a major political victory for President Donald Trump.

Market participants were cautious ahead a final U.S. third-quarter economic growth report due later in the day, as well as data on manufacturing activity and jobless claims.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 93.09, just off the previous session's two-and-a-half week low of 92.76.

Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.

Elsewhere on the Comex, silver futures were down 0.22% d at $16.24 a troy ounce.

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