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PRECIOUS-Gold firms amid steady dollar after U.S. tax plan

Nov 2 (Reuters) - Gold firmed on Friday but held below the previous session's highs as the dollar steadied following modest losses after the unveiling of U.S. tax reforms.

FUNDAMENTALS

* Spot gold was up 0.2 percent to $1,277.88 per ounce at 0107 GMT. It hit the highest in about two weeks, at 1,284.10, in the previous session.

* U.S. gold futures for December delivery were mostly unchanged at $1,278.50.

* The dollar index , which tracks the greenback against a basket of six major rivals, was little changed at 94.698.

* Asian share markets edged higher on Friday as investors gave a guarded reception to Republican plans for massive U.S. tax cuts, while welcoming the appointment of a centrist at the helm of the Federal Reserve.

* Republicans in the U.S. House of Representatives unveiled a tax bill on Thursday that would cost $1.51 trillion and deliver deep tax cuts as promised by President Trump, setting off a race in Congress to give him his first major legislative win.

* The dollar fell to its lowest in a week against a basket of major currencies on Thursday after the unveiling of the new tax plan.

* President Donald Trump on Thursday tapped Fed Governor Jerome Powell to become head of the U.S. central bank, breaking with precedent by denying Janet Yellen a second term but signalling a continuation of her cautious monetary policies.

* SPDR Gold Trust , the world's largest gold-backed

exchange-traded fund, said its holdings fell 0.42 percent to 846.04 tonnes on Thursday.

* The Bank of England raised interest rates for the first time in more than 10 years on Thursday but said it expected only "very gradual" further increases as Britain prepares to leave the European Union, sending sterling down sharply.

* Hong Kong and Shenzhen will launch a gold market tie-up on Nov. 3, providing a boost to cross-border bullion trading and the internationalization of the Chinese currency, Hong Kong's bullion trading bourse said on Thursday.

* African miner Randgold Resources on Thursday said full-year profit and output was on track despite a third-quarter dip, but its shares slid to a three-month low after its CEO did not rule out seeking arbitration over a tax dispute in Mali.

DATA/EVENT AHEAD (GMT)

1230 U.S. Non-farm payrolls Oct 1230 U.S. Private payrolls Oct 1230 U.S. Manufacturing payrolls Oct 1230 U.S. Government payrolls Oct

(Reporting by Arpan Varghese in Bengaluru; Editing by Richard Pullin)