Bengaluru — Gold prices turned lower on Friday as the dollar regained ground after the US Senate approved a budget blueprint for the 2018 fiscal year that will pave the way for Republicans to pursue a tax-cut package without Democratic support. Spot gold had declined by 0.4% to $1,284.60/oz by 3.55am GMT. It was down 1.6% for the week. US gold futures for December delivery were down 0.3% at $1,286.10/oz. The Republican-controlled Senate voted for the budget measure late on Thursday by 51 to 49, which would add up to $1.5-trillion to the federal deficit over the next decade in order to pay for proposed tax cuts. "The dollar is up on account of the Senate vote … which in turn could pave the way for introducing a tax reform bill. That is seen as a cause for higher [interest] rates," INTL FCStone analyst Edward Meir said. The US Federal Reserve is widely expected to raise its benchmark interest rate for the third time this year in December. Higher rates tend to boost the dollar, putting...
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