Gold gains on weaker dollar, US fiscal concerns

Gold prices rose on Wednesday as the dollar slipped to a two-week low and investors sought safety amid U.S. fiscal uncertainty, with Congress debating a sweeping tax bill.

FUNDAMENTALS

* Spot gold was up 0.4% at $3,300.72 an ounce, as of 0035 GMT. U.S. gold futures gained 0.6% to $3,304.00. * The dollar retreated to its lowest level since May 8, making greenback-priced gold cheaper for overseas currency holders.

* Trump on Tuesday pressed his fellow Republicans in the U.S. Congress to unite behind a sweeping tax-cut bill, but apparently failed to convince a handful of holdouts who could still block a package that encompasses much of his domestic agenda.

* Gold, traditionally considered a safe-haven asset during political and economic uncertainty, tends to thrive in a low-rate environment. * Federal Reserve officials said on Tuesday that higher prices are coming on the back of rising U.S. import tariffs, with the question now whether the inflation shock will be fleeting or more persistent.
* Easing trade tensions, St. Louis Fed President Alberto Musalem told the Economic Club of Minnesota, would allow the labor market to stay strong and inflation to remain on path to the Fed’s 2% goal.
* Traders now bet that the Fed will resume cutting rates in October and see around 54 basis points of cuts by the end of 2025. * Elsewhere, new intelligence obtained by the United States suggests that Israel is making preparations to strike Iranian nuclear facilities, CNN reported on Tuesday, citing multiple U.S. officials familiar with the intelligence.
* Spot silver rose 0.2% to $33.15 an ounce, platinum was steady at $1,054.15 and palladium gained 0.1% to $1,014.54. DATA/EVENTS (GMT) 0600 UK Core CPI, CPI YY Apr 0600 UK CPI Services MM, YY Apr.