Investing.com – Gold prices edged higher on Wednesday amid ongoing dollar weakness as House Republicans prepared to re-vote on the tax bill following a technical snafu.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange rose by $7, or 0.55%, to $1,271 a troy ounce.
House Republicans are expected to vote on the tax bill again after passing it Tuesday following the Senate’s technical changes to the bill. The outcome of the vote, however, is expected to remain the same.
Gold prices are well on their way to a second-weekly gain after snapping a three-week losing streak last week, but Goldman Sachs said it expects gold to fall to $1,200 an ounce by mid-2018 as safe-haven demand, underpinning gold prices, is likely to fade amid US tax reform and a smooth transition to a new Fed chair.
Recent data supported Goldman’s bearish view on the precious metal as data showed traders slashed their bullish bets on the gold last week.
Hedge funds and money managers cut their net long positions in COMEX gold contracts to 170,100 from 173,300 in in the week to Dec. 12, U.S. Commodity Futures Trading Commission (CFTC) noted on Friday.
In other precious metal trade, silver futures rose 0.88% to $16.30 a troy ounce, while platinum futures gained 0.73% to $920.75.
Copper traded at $3.2, up 1.57%, while natural gas fell by 2.08% to $2.64.