- U.S. Senate approves tax bill
- Dollar falls to two-week low
- U.S. bond yields highest in nine months
Stockbyte
Gold prices rose on Wednesday for a fourth straight session to reach a two-week high as U.S. data showing solid home sales but a fall in mortgage applications pushed the dollar to a two-week low.
Gains in bullion were limited, however, by a rise in U.S. bond yields to nine-month highs after the Congress passed the country's biggest tax overhaul in decades. A weaker dollar makes gold cheaper for holders of other currencies, which can stimulate demand, but higher Treasury yields reduce the appeal of non-yielding bullion.
Spot gold was up 0.3 percent at $1,265.26 an ounce, after rising to $1,267.81, the highest since Dec. 6.
U.S. gold futures for February delivery settled up 0.4 percent at $1,269.60. Gold has risen by around 2.5 percent from a five-month low of $1,235.92 on Dec. 12, helped by a weakening dollar.
