• Gold edged higher on Monday as uncertainty over U.S. tax legislation weighed on the dollar, while an analyst said bullion might face renewed headwinds early next year. Platinum rose 2 percent as investors recovered short positions.
• Spot gold was up 0.53 percent at $1,261.87 an ounce by 1:40 p.m. EST (1840 GMT) after hitting $1,263.98, its highest since Dec. 6.
• U.S. gold futures for February delivery settled up $8, or 0.6 percent, at $1,265.50 per ounce.
• Platinum rose 1.8 percent to $909.25 an ounce after rising to $915, its highest since Dec. 6.
• "If (the tax bill) were to pass, we think the gold price would fall lower," said Rob Haworth, senior investment strategist for U.S. Bank Wealth Management. "That has to do with stronger growth, more room for the Fed to normalize interest rates. That should create a headwind for investors."
• "If the tax proposal were to fail, there would be some reason to think there's political risk at that point because it would take the market by surprise, and that would provide some support for gold," Haworth added.
• Top U.S. Republicans expect Congress to pass the bill this week, with votes in the House of Representatives and Senate as early as Tuesday.
• A final bout of dollar strength could hit gold into 2018, sending prices down $25 to $50, but then it should recover, said analyst Carsten Menke of Julius Baer in Zurich.
• Silver was up 0.4 percent at $16.12 an ounce after rising to a nearly two-week high of $16.17 while Palladium fell 0.6 percent to $1,017 an ounce.
Reference: Reuters
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