PRECIOUS-Gold prices ease despite slightly weaker dollar

    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.
    * 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
    * 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
    * 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.          
    0700  Germany        Industrial orders             Oct
    1315  U.S.           ADP national employment       Nov

 (Reporting by Apeksha Nair in Bengaluru; Editing by Joseph