Gold prices inched higher on Tuesday and the dollar softened amid expectations that the U.S. Federal Reserve may take a wait-and-see attitude towards future rate hikes.
However, investors are pricing in a 73 percent chance of a rate hike following the December 18-19 meeting.
Spot gold rose 0.31 percent to $1,247.59 per ounce after hitting its highest level in nearly five months at $1,250.55 in the prior session. U.S. gold futures were 0.29 percent higher at $1,253.05 per ounce.
Gold is benefiting from a weakening U.S. dollar and a stock-market turmoil amid a plethora of political and economic risks.
After calling off a crunch House of Commons vote, U.K. Prime Minister Theresa May will now meet European leaders and EU officials in the hope of clinching a better Brexit deal.
Italy's budget dispute with Brussels is set to escalate in coming weeks, as the government hasn't reached a consensus on the budget yet.
The U.S.-China trade war is still on despite a trade war truce struck at the G20 summit.
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