COMEX gold witnessed a sharp rebound post FOMC decision but has become stuck in a narrow range near $1255/oz today. Gold is steady as market players await more clarity about US tax reforms
US policymakers this week agreed on a final tax bill which will be put to vote next week. If the bill is passed, it will reduce tax rates for individuals and corporates resulting in higher investment and spending and thereby higher economic growth.
Concerns about tax reforms rose as Florida Republican threatened to oppose it unless there are further enhancements to the child tax credit.
Uncertainty about tax reforms also brought a halt to gains in US equity market. US DJIA index fell 0.3% yesterday after hitting record high level earlier this week.