Gold prices were hovering near a two-week high on Tuesday, as caution surrounding U.S. tax reform plans and ahead of U.S. housing sector data dampened demand for the U.S. dollar.
Trading volumes were expected to become more and more thin throughout the week, ahead of the Christmas holiday.
Comex gold futures were up $1.70 or about 0.13% at $1,267.20 a troy ounce by 03:00 a.m. ET (07:00 GMT), just off a two-week high of $1,267.80 hit overnight.
The U.S. dollar was initially boosted after Republicans on Friday put the finishing touches on a sweeping tax overhaul bill.
They are confident Congress will now pass the tax bill this week, with a Senate vote planned as early as Tuesday.
Market participants were looking ahead to reports on U.S. building permits and housing starts, due later Tuesday for further indications on the strength of the housing maket.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.10% at 93.14.
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 slipped 0.09% to $16.19 a troy ounce.
