Gold prices were slightly lower on Thursday, trading in a tight range as the US House of Representatives passed its version of sweeping tax cuts and investors weighed possible changes in fiscal policy against the impact of an expected rise in US interest rates. The House passed a bill to cut federal tax rates on corporations, small businesses and individuals. The US Senate has yet to vote on its version the bill.
Spot gold was down 0.1 percent at $1,277.80 an ounce by 2:09 pm EST (1909 GMT). On Wednesday, it touched a 3-1/2 week high of $1,289.09. US gold futures for December delivery settled up 50 cents, or 0.04 percent, at $1,278.20 per ounce. So far in November, gold has traded in a tight range spanning about $24.
ICBC Standard Bank precious metals strategist Tom Kendall said the reason for rangebound trade was pressure from the prospect of a rise in US interest rates dueling with support from uncertainty about US fiscal policy. In physical demand, a note by BMI Research said China's gold production growth is expected to slow over the years to 2026 because of depleting reserves and rising production costs.
In other precious metals, palladium broke a five-session losing streak, rising 0.4 percent at $987.50 an ounce after touching a two-week low on Wednesday. Silver up 0.4 percent at $17.06 an ounce and platinum up 0.1 percent at $932 an ounce.
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