Gold prices remained supported on Wednesday, as optimism over a major U.S. tax overhaul quickly waned and offered no support to the dollar.
Trading volumes were expected to become more and more thin throughout the week, ahead of the Christmas holiday.
Comex gold futures were up $2.70 or about 0.21% at $1,266.80 a troy ounce by 03:00 a.m. ET (07:00 GMT), just off the previous session’s two-week high of $1,268.40.
The greenback showed little reaction after the House of Representatives on Tuesday approved the biggest U.S. tax overhaul in 30 years.
Due to procedural issues another vote later will take place on Wednesday, but it is still considered as a step closer to the implementation of a major U.S. tax overhaul.
The Senate vote was expected to follow on Thursday.
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.
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 little changed at $16.16 a troy ounce.
