Dec 6 (Reuters) - Gold prices nudged down early on Wednesday after touching a two-month low in the previous session, despite a slightly weaker dollar. FUNDAMENTALS * Spot gold was down 0.1 percent at $1,264.42 an ounce by 0104 GMT. The session before, it hit its lowest since Oct. 6 at $1260.71. * U.S. gold futures were up 0.2 percent at $1,266.80. * The dollar edged down on Wednesday, as concerns about a possible U.S. government shutdown offset optimism about progress on tax reform legislation. * Democrats have a rare chance to win major concessions in a U.S. Congress they do not control by taking advantage of a battle within the Republican Party over keeping the government open. * The Republican-controlled U.S. House of Representatives voted on Monday to go to conference on tax legislation with the Senate, moving Congress another step closer to a final bill. * A U.S. Senate committee advanced legislation Tuesday that would ease financial rules for banks for the first time since the 2007-2009 financial crisis. * The U.S. Senate Banking Committee on Tuesday voted to approve Fed Governor Jerome Powell to lead the Federal Reserve, sending his nomination to the full Senate for a vote. * The U.S. trade deficit increased to a nine-month high in October due to rising oil prices and the widening of America's long-standing deficits with China and Mexico. * Business activity across the euro zone looks set to end 2017 on a high note after a busy November, according to a survey giving the latest evidence the bloc's economy was a star performer this year. * Britain's economy is ending 2017 lagging the euro zone's strong recovery as the effects of last year's Brexit vote weigh on shoppers and on businesses, according to a range of data released on Tuesday. * SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.17 percent to 845.47 tonnes on Tuesday from 846.93 tonnes on Monday. DATA/EVENT AHEAD (GMT) 0700 Germany Industrial orders Oct 1315 U.S. ADP national employment Nov (Reporting by Apeksha Nair in Bengaluru; Editing by Joseph Radford)
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