Gold prices edged higher on Wednesday after shedding nearly 1% in the previous session, as some optimism about Britain's negotiations to leave the European Union ebbed, while a risk-on sentiment capped the bullion's gains.
Spot gold was up 0.2% at $1,484.10 per ounce as of 0427 GMT. U.S. gold futures were 0.3% higher at $1,487.90 per ounce.
"There are some uncertainties since there is a lot to go through on Brexit. For instance even if both EU and UK negotiators agree on terms it still has to go through the parliament," AxiTrader market strategist Stephen Innes said.
However, a signed Brexit deal could push yields higher, which fundamentally are significant headwinds over the near term for gold, Innes added.
Markets are still awaiting the outcome of talks that dragged on late into Tuesday night to see whether Britain and the EU can draft an agreement on Brexit before a summit later this week. It also remained unclear if London could avoid postponing its scheduled departure on Oct. 31.
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