By Apeksha Nair
(Reuters) - Gold prices inched higher in quiet trade on Wednesday as the dollar held steady on expectations the U.S. government would pass the country's biggest tax overhaul in 30 years.
Spot gold had risen 0.2 percent to $1,263.65 an ounce by 0347 GMT. U.S. gold futures were also up 0.2 percent, at $1,267 an ounce.
"There is no news driving this other than perhaps some risk-aversion as Bitcoin fell by 10 percent overnight," said Jeffrey Halley, a senior market analyst with OANDA.
Digital currency Bitcoin was down 5 percent on the Bitstamp exchange at $16,810, after earlier dropping to a one-week low at $15,800.
"Gold has resistance at $1,265 followed by the 200-day moving average at $1,269," Halley said, adding that immediate support for the metal would come in at $1,261 an ounce.
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Meanwhile, the dollar was supported after the House of Representatives on Tuesday approved the proposed U.S. tax overhaul, though Congressional Republicans will likely need to hold another vote later on Wednesday due to procedural issues.
"The better-than-expected housing data in the U.S. weighed on investor appetite. A lack of safe-haven buying, as well as stronger equity markets have been a major factor behind the lacklustre performance in recent weeks," ANZ analysts said in a note.
Upbeat U.S. housing data and the House's approval of the tax overhaul boosted U.S. Treasury yields.
"Gold is coming up from a cyclical bottom. It's going to get quieter due to the upcoming holiday long-weekends," said Mun Chun Loh, Director, Private Wealth at GoldSilver Central Pte Ltd in Singapore.
"All we see is a bit of book positioning in anticipation of adjusting their positions for the next 2-3 weeks ahead."
Silver was up 0.1 percent at $16.13 an ounce, after touching a two-week high of $16.22 in the previous session.
Platinum was nearly unchanged at $913.40 an ounce, having hit a two-week peak of $919.40 on Tuesday.
Palladium was up 0.1 percent at $1,021.65 an ounce.
(Reporting by Apeksha Nair in Bengaluru; Editing by Amrutha Gayathri and Joseph Radford)
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