Gold inched up early Friday, holding near a three-week high amid uncertainty over U.S. tax reforms, and was on track for its first weekly rise in a month.

Fundamentals

* Spot gold was up 0.1 percent at $1,286.30 per ounce at 0101 GMT. On Thursday, it touched its highest since Oct. 20 at $1,288.34 an ounce. The safe haven asset was up about 1.3 percent for the week so far.

* U.S. gold futures for December delivery were flat at $1,287.20.

* Palladium gained 0.2 percent to $1,011.97 an ounce. It touched its highest since 2001 at $1,026.10 on Thursday.

* The dollar was on track for weekly losses after dropping on disappointment with a tax bill put forth by U.S. Senate Republicans that would delay expected corporate tax cuts.

* Asian shares slipped on Friday with MSCI's broadest index of Asia-Pacific shares outside Japan falling 0.1 percent.

* Gold demand slid to its lowest in eight years in the last quarter as jewellery buying fell and inflows into bullion-backed exchange traded funds dried up, data from the World Gold Council showed on Thursday.

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