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PRECIOUS-Gold dips as dollar shines after U.S. Senate clears tax bill

Dec 4 (Reuters) - Gold prices traded lower early on Monday, as the dollar gained after Republicans in the U.S. Senate passed a bill to overhaul the country's tax system, moving the process forward.

FUNDAMENTALS

* Spot gold was down 0.4 percent at $1,275 an ounce by 0047 GMT.

* U.S. gold futures were down 0.3 percent at $1,278.10.

* The U.S. dollar bounced to a two-week top on Monday as traders celebrated the passage of a Senate tax bill over the weekend, while stronger U.S. stock futures pointed to a merry start for Asian shares.

* The U.S. Senate narrowly approved a tax overhaul on Saturday, moving Republicans and President Donald Trump a big step closer to their goal of slashing taxes for businesses and the rich while offering everyday Americans a mixed bag of changes.

* U.S. Senate Republican leader Mitch McConnell said on Sunday it would be "ridiculous" for a fight with Democrats over immigration issues to result in a standoff over a year-end spending bill and prompt a shutdown of the federal government.

* A series of tweets by U.S. President Donald Trump about the investigation into contacts between his 2016 campaign and Russia prompted concerns on Sunday among both Democratic and Republican lawmakers, with Republican Senator Lindsey Graham saying Trump could be wading into "peril" by commenting on the probe.

* The Pentagon is scouting the West Coast for places to deploy new anti-missile defenses, two Congressmen said on Saturday, as North Korea's missile tests raise concerns about how the United States would defend itself from an attack.

* A measure of U.S. factory activity fell more than expected in November as a gauge of employment cooled, but the index continued to point to strengthening manufacturing conditions.

* Two Federal Reserve policymakers urged caution in raising interest rates on Friday, saying that the flattening of the yield curve was a signal that the central bank should proceed slowly.

* SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 1.02 percent to 848.11 tonnes on Friday from 839.55 tonnes on Thursday.

* Hedge funds and money managers raised their net long positions in COMEX gold and copper contracts in the week to Nov. 28, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

DATA/EVENT AHEAD (GMT)

0930 Euro zone Sentix index Dec 1000 Euro zone Producer prices Oct 1445 U.S. ISM-New York index Nov 1500 U.S. Factory orders Oct

(Reporting by Apeksha Nair in Bengaluru; editing by Richard Pullin)