Gold edges up as dollar softens versus yuan

Gold prices drifted higher in Asian trade on Wednesday, extending gains into a second session, as the U.S. dollar softened against China's yuan and the euro.

Spot gold rose 0.2 percent to $1,213.56 an ounce at 0320 GMT, after rising 0.4 percent in the previous session.

U.S. gold futures were up 0.3 pct at $1221.70 per ounce.

"The dollar-CNH is a bit under pressure this morning and we're seeing some buying on the back of that," a Hong Kong-based trader said.

China's yuan held firm near a one-week high versus the dollar early Wednesday, following firmer equities, extending rise after the central bank last week took steps to curb the currency's decline.

Against a basket of currencies, the dollar eased 0.1 percent as its recent rally on concerns over escalating trade tensions showed signs of fading.

A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.

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