15.12.201702:41:00UTC+00Gold Prices Rise as Dollar Drops on Tax Bill Jitters

Gold prices increased earlier on Friday, on track for their first weekly gain in four, as the dollar slipped on concerns regarding the progress of U.S. tax reform.

Spot gold rose by almost 0.2 percent at $1,254.74 per ounce, and has added 0.5 percent so far this week.

U.S. gold futures were flat at $1,257 per ounce.

Spot gold is expected to test a resistance at $1,262 per ounce, a break above which could lead to a gain to the next resistance at $1,276, said Reuters technicals analyst Wang Tao.

In other precious metals, silver and platinum climbed 0.2 percent, at $15.90 an ounce and $880.50 an ounce, respectively. Palladium fell 0.3 percent at $1,030.15.

The dollar was on the defensive on Friday after wavering over a bill to change the U.S. tax code which weighed on confidence.

The greenback fell 0.1 percent at 112.26 yen.

The dollar lost further ground after two U.S. Republican senators were reported to have sought changes to the proposed legislation to overhaul the U.S. tax code.

The euro flagged after the European Central Bank raised growth and inflation forecasts for the euro area, but stuck with its pledge to provide stimulus for as long as needed.

The common currency was flat at $1.1784 after dropping around 0.4 percent overnight.

The dollar index against a basket of six major currencies steadied at 93.56, as it pulled back from an eight-day low of 93.282 set overnight. It was on track for a weekly loss of 0.3 percent.