Gold falls

Bengaluru

Gold prices edged down on Thursday on ebbing geo-political worries but scepticism over U.S. President Donald Trump´s proposed tax reform curbed further losses.

Spot gold was down 0.2 percent at $1,266.94 per ounce, as of 0406 GMT. Bullion prices edged away from a two-week low of 1,259.90, hit during the session on Wednesday. U.S. gold futures climbed 0.3 percent to $1,268.30 an ounce.

"Gold is being pulled down by descending global risk sentiment. But the market is still worried about whether (U.S. tax cut) policy would be carried out, as the rate cut is too steep but there are not many fiscal supplies to compensate to this policy," a trader with a Shanghai-based bullion bank said.

President Donald Trump unveiled a one-page plan on Wednesday proposing deep U.S. tax cuts, many for businesses, that would make the federal deficit balloon if enacted, drawing a cautious welcome from fiscal conservatives and financial markets.