Gold futures closed higher in the international market on Wednesday with the dollar softening as lawmakers approved a comprehensive tax overhaul.
The yellow metal climbed as stocks struggled for direction, following a series of records in anticipation of the passage of the bill, which includes massive corporate tax cuts.
As per reports, tax changes offer a mixed bag for the metal. Some analysts have noted the increased risk of inflation, against which gold can act like a hedge, if the law supercharges the economy and forces the Fed to ramp up its rate-tightening efforts. On the other hand, tax-fueled gains in U.S. stocks and other risk-on markets had helped to drive gold to five-month lows earlier this month.