The spot gold price was quoted at $1,295.00-1,295.30 per oz as of 04:33 BST, up just $0.95 on the previous session's close.
USA stock-market indices relinquished earlier gains to close little changed on Tuesday, 26 September 2017 with the Dow industrials extending a losing streak to a fourth session. If there was to be an interest rate hike confirmed in the US then the GBP/USD could comfortably move back into the low 1.30s.
Rabobank strategists say that if the tax reforms raises the chances of the USA sustaining a 3 percent growth rate, then it will be a significant boost for the dollar which has suffered this year and is poised for its biggest annual drop since 2004.
Speculators' net short bets on the us dollar grew in the latest week to the highest total since January 2013.
Investors were also optimistic about the U.S. tax reforms expected to be announced by Trump's administration and Republicans in Congress today at 1920GMT.
Republicans in the U.S. Congress and the White House called for slashing tax rates on businesses and the wealthy on Wednesday, as part of a new tax plan that offers few details about how to pay for tax cuts without expanding the federal deficit.
"The current level of the policy rate is appropriate given current macroeconomic data", he said.More news: Trump attacks McCain and other Republicans over healthcare failure
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"But we should also be wary of moving too gradually.without further modest increases in the federal funds rate over time, there is a risk that the labor market could eventually become overheated, potentially creating an inflationary problem down the road that might be hard to overcome without triggering a recession". "The impact of a successfully implemented (tax overhaul) plan would be far-reaching with President Trump placing a key focus on bringing back funds from US firms "parked overseas".
USA stocks traded mixed on Tuesday, as markets weighed a strong signal from Fed Chair Janet Yellen that interest rates will soon rise.
The deterioration in South Africa's institutional strength, a key issue also for rating agencies, was reflected in the country's 14-point drop in the World Economic Forum's Competitiveness Index released on Wednesday.
S&P 500 e-minis were down 2.5 points, or 0.1 percent, with 127,187 contracts traded. It rose by as much as 0.3% earlier.
-The euro sank 0.5 percent to $1.1792, the weakest in five weeks.
The aussie extended its losses for the third day reaching a six-week low of $0.7835 on the back of a stronger dollar and decreasing metal prices.