Prices for gold fell on Friday after the U.S. Senate approved a budget blueprint facilitating for tax cuts. The narrow vote caused European stocks, the dollar and bond yields to rise as investors betting on faster economic growth bought riskier assets.
The Republican-controlled Senate voted by 51-to-49 late on Thursday for the measure, which clears a hurdle to President Donald Trump's plans to reduce taxes by up to $6 trillion.
Higher bond yields increase pressure on bullion because gold does not offer a yield, while a stronger dollar makes it more expensive for holders of other currencies.
Spot gold was down 0.5% at $1,283.36 U.S. an ounce early Friday morning, taking losses this week to 1.6%. U.S. gold futures for December delivery were 0.4% lower at $1,285.30 U.S. an ounce.
Moreover, analysts at Commerzbank said gold's failure to remain above $1,300 could prompt speculative investors betting on higher prices to exit their positions, pushing prices lower.
The net long position of money managers in Comex gold has fallen from a peak in early September but is still at an elevated level.
In other precious metals, silver was down 0.1% at $17.19 U.S. an ounce.
Platinum was flat at $921.20 U.S. an ounce and palladium was up 1.3% at $970.72 U.S. Both metals were down on the week.
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