Gold prices fell on Monday toward the four-week lows hit last week as the US dollar strengthened after the US Senate approved a major tax overhaul and the market looked ahead to a meeting of the Federal Reserve later this month. Spot gold was down 0.5 percent at $1,274.16 an ounce by 1:50 p.m. EST (1850 GMT,) not far from last Thursday's $1,270.11, its lowest level since Nov. 6.
US gold futures for February delivery settled down $4.60, or 0.4 percent, at $1,277.70 per ounce. The US Senate approved a tax reform bill on Saturday, moving President Donald Trump a big step closer to his goal of cutting taxes for businesses and the rich while offering everyday Americans a mixed bag of changes.
"The tax proposal would be bad for gold because it is expected to increase growth in the US, making the Fed more likely to increase interest rates. Higher rates are bad for a non-yielding asset like gold," said Ryan McKay, commodity strategist at TD Securities in Toronto. Strong technical support for gold is around $1,266 at the 200-day moving average, while resistance kicks in at about $1,283 near the 21- and 55-day moving averages.
In other precious metals, silver slipped 0.8 percent to $16.31 an ounce, after dipping to $16.22, the last session's low. Platinum was down 1.33 percent at $925, touching a nearly two-week low of $918. Palladium dropped 2.3 percent to $996.50 an ounce, hitting $993.97, a one-week low.
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