Investing.com - Gold prices dropped on Friday, as the U.S. dollar strengthened amid fresh hopes for a major tax overhaul in the near future.
Comex gold futures were down $3.54 or about 0.28% at $1,286.44 a troy ounce by 03:00 a.m. ET (07:00 GMT).
The greenback was boosted after the U.S. Senate late Thursday approved a budget blueprint for the 2018 fiscal year that will pave the way for Republicans to pursue tax-cut plans without Democratic support.
The Republican-controlled Senate voted for the budget measure by 51-to-49, which would add up to $1.5 trillion to the federal deficit over the next ten years in order to pay for proposed tax cuts.
Meanwhile, speculation over who will replace Janet Yellen as head of the Fed persisted.
Reports that U.S. President Donald Trump was leaning toward Fed Governor Jerome Powell, who is perceived as a less hawkish candidate, had temporarily weighed on the dollar.
Trump concluded interviews on Thursday with the five candidates, including Janet Yellen, he is considering to chair the Fed. He could announce a decision as early as next week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.38% at 93.35.
Elsewhere on the Comex, silver futures slid 0.32% to $17.20 a troy ounce.