PRECIOUS-Gold up as dollar slips on possible delay in U.S. tax cut plan

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(Updates prices, adds quotes) Nov 8 (Reuters) - Gold prices nudged higher on Wednesday, as the dollar slipped following a media report that suggested a delay in the implementation of a major corporate tax cut under a crucial U.S. tax reforms plan.

Spot gold was up 0.2 percent at $1,277.94 per ounce

as of 0426 GMT. It fell about 0.5 percent on Tuesday.

U.S. gold futures for December delivery gained 0.2

percent to $1,278.40. Senate Republican leaders are considering a one-year delay in implementing the centerpiece tax cut to comply with Senate rules, the Washington Post reported on Tuesday, citing unidentified sources. Republicans, who hold a slim majority in the U.S. House of Representatives, forged ahead on Tuesday with legislation to reshape the U.S. tax code, which the Democrats have blasted as a give-away to corporations and the rich. Senate Republicans are expected to unveil their own tax bill at the end of the week, and early indications suggest it could differ significantly from the House legislation. "Gold began on the front foot this morning with the dollar sold off aggressively...," MKS PAMP trader Alex Thorndike said in a note.

The dollar index , which measures the greenback

against a basket of six currencies, fell 0.1 percent. "$1,280-85 remains the ceiling for now and it will be interesting to see whether this Washington Post article can generate some upward momentum today in Europe and New York," Thorndike said. An anti-graft purge in Saudi Arabia and U.S. President Donald Trump's visit to South Korea amid tensions with the North could boost prices of the yellow metal, analysts said. "While the fundamentals are showing that gold prices should fall into 2018, these geopolitical events could cloud the fundamentals," OCBC analyst Barnabas Gan said. Trump said on Wednesday the United States would defend itself and its allies against Pyongyang's nuclear threat, warning its leader that nuclear weapons it is developing "are not making you safer, they are putting your regime in grave danger." Saudi Arabia's anti-corruption campaign, led by Crown Prince Mohammed bin Salman, is being seen by critics as a populist power grab, but as an overdue attack on the sleaze of a moneyed ultra-elite by ordinary Saudis. "The fact that oil has now broken out on the charts bodes well for further gains and gold could get pulled up with crude," said INTL FCStone analyst Edward Meir. Crude oil prices dipped on Wednesday, although they were still not far off from near two-and-a-half year highs reached earlier this week.

Meanwhile, holdings in SPDR Gold Trust , the world's

largest gold-backed exchange-traded fund, fell 0.14 percent to 844.27 tonnes on Tuesday.

In other precious metals, silver rose 0.3 percent to $17.01 an ounce. Platinum was up 0.1 percent at $923.40 an ounce, while palladium gained 0.3 percent to $995.50

per ounce.

(Reporting by Vijaykumar Vedala in Bengaluru; Editing by Biju Dwarakanath)