Gold prices inched up from a two-month low on Wednesday, as the dollar weakened on concerns over the progress of a US tax reform plan. Spot gold rose 0.2 percent to $1,268.84 an ounce by 0803 GMT after it hit its lowest since October 6 in the previous session. US gold futures were up 0.5 percent at $1,271.10. The Republican-controlled US House of Representatives voted on Monday to go to conference on tax legislation with the Senate, moving Congress another step closer to a final bill.
"Purely technically, gold is range-bound. We think the dollar strength is not going to last long," said Dominic Schnider at UBS Wealth Management in Hong Kong. Meanwhile, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.17 percent to 845.47 tonnes on Tuesday. Spot gold may break support at $1,262 per ounce, and fall to the next support level at $1,250, Reuters technicals analyst Wang Tao said.
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