Gold prices edged higher in Asian trade on Thursday as the dollar weakened against the pound and euro after the British cabinet approved the prime minister's draft Brexit plan. Both spot gold and US gold futures were up 0.1 percent, at $1,212.21 and $1,211.7 per ounce respectively at 0749 GMT.
"There's going to be a bid for gold provided the dollar continues to slide," said Stephen Innes, APAC trading head at OANDA in Singapore. Gold has fallen more than 11 percent from a peak in April as investors flock to the dollar, with US-China trade friction unfolding against a backdrop of higher US interest rates.
"If a good trade deal comes out of the upcoming talks (between China and the United States) it could be positive for gold," said Renisha Chainani, head of commodity and currency research at Monarch Networth Capital.
"Gold prices have taken important support level at $1,200 and rebounded and I think this uptrend would continue." Spot gold may extend its bounce to $1,223 per ounce, following its stabilization around a support at $1,195, said Reuters technical analyst Wang Tao.
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