Gold has gained more than 2% since mid-March as economic fundamentals lined up to support a rally, and could be poised to gain again on Thursday if The Trump administrations reforms are rattled by a failure to push through plans to repeal and replace the Affordable Care Act.

Gold traded early in Europe's session at €1,156.54 ($1247.30) in line with its Wednesday close and in relatively flat trading on Europe's major markets. The metal is up 2.3% since March 14, the day before the Federal Reserve set up the rally by hiking interest rates but damped expectation of future increases by declaring that U.S. monetary policy will remain supportive for "some time."

Dollar denominated generic gold futures for delivery in June have risen 4% to $1.250.70 over the same period.

Gold stocks have unsurprisingly profited. AngloGold Ashanti (AU) - Get Report finished Wednesday at $11.07, down on the day but up 12.5% since March 14. London-listed Fresnilo (FNLPF) is up 8% over the same period and traded Thursday at 1,561 pence, while Polymetal (AUCOY) has gained 10.6% to trade Thursday at 1,027 pence. London's FTSE 100 has fallen 0.6% over the same period.

The question now is does this gold bull have legs?

Goldman Sachs is equivocal: "We believe that while both a bull and a bear case can be made for gold, in the near term, risks remain skewed to the downside (strong US economic data combined with a pick-up in global demand indicators may lead to rotation out of gold)," the broker noted in the wake of the Fed's rates decision. "Our economists recently suggested that the Fed might be slightly behind the curve: this could require faster tightening than the market is currently pricing in, a potential negative for gold."

Doubts about the Trump administration's ability to drive through its platform of tax and spending reforms, which have been fingered as the culprit behind this weeks wobble, remain the joker in the pack.

Thursday's scheduled vote in congress on Republican plans replace Obamacare will provide a near-term litmus test. Opposition to the plan has already rattled faith in Trump's promise of a rapid overhaul of government programs, while Republicans have warned that the bill's failure could skewer tax and spending reforms.

"Even on healthcare, where there is some form of consensus, reforms are likely to take a lot longer than realized," CMC Markets' Michael Hewson wrote in a note this week. "Other programs like tax and banking reform and infrastructure spending are likely to get pushed further out into the future."

The other thing to keep an eye on is oil prices. The per barrel price of of oil is a major component of national inflation measures. Weaker oil prices will ease pressure on the Fed and other central banks to hike interest rates, which is bad for gold prices.

Brent Crude, the global benchmark for seaborne oil, has tumbled 9.3% since the start of March to trade Thursday at $50.80.

Concerns about oil supply growth, notably due to a faster than expected ramp up of U.S. shale output, and evidence of unusually high reserves in U.S. depots have led analysts to revise down their oil price expectations. Tudor Pickering Holt on Wednesday cut its 2018 forecast for the U.S. benchmark West Texas Intermediate by 13% to $65 a barrel.

Goldman Sachs, in a note published March 21, warned the market could return to a material "oversupply in 2018-19" due to increased U.S. production and as the "largest increase in mega projects in history" comes on line from this year.

The other thing to keep an eye on is oil prices. The per barrel price of of oil is a major component of national inflation measures. Weaker oil prices will ease pressure on the Fed and other central banks to hike interest rates, which is bad for gold prices.

Brent Crude, the global benchmark for seaborne oil, has tumbled 9.3% since the start of March to trade Thursday at $50.80.

Concerns about oil supply growth, notably due to a faster than expected ramp up of U.S. shale output, and evidence of unusually high reserves in U.S. depots have led analysts to revise down their oil price expectations. Tudor Pickering Holt on Wednesday cut its 2018 forecast for the U.S. benchmark West Texas Intermediate by 13% to $65 a barrel.

Goldman Sachs, in a note published March 21, warned the market could return to a material "oversupply in 2018-19" due to increased U.S. production and as the "largest increase in mega projects in history" comes on line from this year.