Gold dips

Bengaluru: Gold prices turned lower on Friday as the dollar regained ground after the U.S. Senate approved a budget plan for the 2018 fiscal year that will ease passage for Republicans to pursue a tax-cut package without Democratic support.

Spot gold had declined by 0.4 percent to $1,284.06 an ounce by 0700 GMT. It was down 1.6 percent for the week. U.S. gold futures for December delivery were down 0.3 percent at $1,285.50 per ounce. The Republican-controlled Senate voted for the budget measure late on Thursday by 51-to-49, which would add up to $1.5 trillion to the federal deficit over the next decade in order to pay for proposed tax cuts. "The dollar is up on account of the Senate vote, which in turn could pave the way for introducing a tax reform bill. That is seen as a cause for higher (interest) rates," INTL FCStone analyst Edward Meir said. The U.S. Federal Reserve is widely expected to raise its benchmark interest rate for the third time this year in December.