Reuters – Gold edged higher on Friday as the dollar weakened following a report that US President Donald Trump's 2016 election campaign was subpoenaed for documents containing specified Russian keywords from more than a dozen officials.
Investigators looking into possible Russian interference in last year's US presidential election issued the subpoena last month, the Wall Street Journal reported.
Spot gold was up 0.4% at $1,282.65 per ounce, as of 0938 GMT. It is up about 0.7% for the week, poised to post a second straight weekly gain.
"The fall in the dollar and strengthening in Asian currencies have made gold attractive for Asian investors," said John Sharma, an economist with National Australia Bank.
However, uncertainties surrounding a US tax reform bill and a likely interest rate hike by the Federal Reserve (Fed) next month are sending mixed signals to the market, keeping gold range-bound, he said.
"Prices should likely continue to hover between $1,260 and $1,290 in the short-term," he added.
US Republican lawmakers on Thursday took an important step toward the biggest tax code overhaul since the 1980s as the House of Representatives approved a broad package of tax cuts sought by Trump.
"Gold prices will continue a sideways drift in the coming months as rising nominal interest rates in the US keep a lid on investment demand," BMI Research said in a note.
"Prices will grind moderately higher in the longer term as developed market inflation rebounds."
San Francisco Fed President John Williams reiterated his view on Thursday that the US economy is growing strongly enough for the Fed to continue raising rates gradually over the next couple of years to around 2.5%.
Meanwhile, Cleveland Fed President Loretta Mester said on Thursday she feels inflation is poised to pick up, clearing the way for the Fed to continue its gradual process of raising interest rates.
Spot gold is biased to rise above a neutral range of $1,270-$1,286 per ounce, and gain further towards $1,298, according to Reuters technicals analyst Wang Tao.
The dollar index against a basket of six major currencies was down 0.24%.