Gold prices moved higher on Friday, as the U.S. dollar was weakened by new developments in a special investigation into Donald Trump’s presidential campaign and amid ongoing uncertainty over the fate of a major U.S. tax overhaul.
Comex gold futures were up $3.74 or about 0.31% at $1,281.94 a troy ounce by 04:00 a.m. ET (08:00 GMT).
The U.S. House of Representatives on Thursday approved a broad package of tax cuts, which will now be debated by the Senate.
Investors were still cautious however, as the Republican majority is smaller in the Senate and no decisive action is expected until after next week’s Thanksgiving holiday.
The greenback also remained under pressure following reports that U.S. President Donald Trump’s election campaign had been subpoenaed for documents in an ongoing investigation relating to possible Russian interference in the 2016 presidential election.
The Wall Street Journal reported on Thursday that Special Counsel Robert Mueller issued a subpoena to more than a dozen officials.
Robert Mueller is currently heading an investigation into attempts by the Russian government to meddle in the 2016 election and potential collusion with Donald Trump’s presidential campaign.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.18% at 93.67, not far from Wednesday’s three-week lows of 93.31.
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 $17.06 a troy ounce.
