Investing.com - Gold prices gained in Asia on Wednesday after snag in passage of US tax cuts linked to a procedural issue in the Senate kept markets on edge even as most analysts say the bill will still pass this week.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange rose 0.22% to $1,267.00 a troy ounce.
Overnight, gold prices edged lower on Tuesday weighed by a rally in Treasuries on growing optimism surrounding the outcome of the tax bill vote, and solid housing data pointing to underlying economic strength.
Despite the weaker dollar, a rebound in US Treasuries following stronger-than-expected housing data, limited gains in the precious metal.
The Commerce Department said on Tuesday that single-family homebuilding, which accounts for the largest share of the housing market, rose 5.3% to a rate of 930,000 units. That was the highest level since September 2007.
Gold prices have added to recent gains after notching a two-week winning streak last week despite data showing traders continued to abandon their bullish bets on the yellow metal.
Hedge funds and money managers cut their net long positions in COMEX gold contracts to 170,100 from 173,300 in in the week to Dec. 12, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.