Gold prices edged lower on Wednesday as safe-haven demand for the metal was hurt by a risk-conducive environment with equities rallying to seven-month highs, while a weaker dollar limited bullion's losses.
Spot gold edged 0.2 percent lower to $1,290.81 per ounce as of 0742 GMT, having touched its lowest level since March 7 at $1,284.76 in the previous session. US gold futures were flat at $1,295.50 an ounce.
"There won't be much movement in gold prices as stocks have gone up to their highs in Asia and investors are not seeing gold as a good safe-haven," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
Asian shares climbed to seven-month highs as investors lapped up signs of progress in US-China trade talks and brisk economic data.
Markets drew hope from White House economic adviser Larry Kudlow, who on Tuesday said the two countries "expect to make more headway" in trade talks this week.
US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to resume talks with Chinese vice premier Liu He later on Wednesday.
The prospects of a trade resolution between the two countries weighed on the dollar, thereby limiting gold's losses.
The dollar, which secured preference over gold as a safe-haven against the trade-war, shed about 0.2 percent against its rivals.
"The yellow metal continues to trade within the $1,280 to $1,300 range and still looks likely to test downside support through $1,280-$1,285 as global equities firm," MKS said in a note.
Investors now await cues on the strength of the US economy from the non-farm payrolls data due on Friday.
The market is also closely following developments around Britain's departure from the European Union. Prime Minister Theresa May said on Tuesday she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour leader.
Signifying investor sentiment toward bullion, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since March 8 at 768.10 tonnes on Tuesday.
Among other precious metals, spot palladium was up 0.3 percent at $1,433.77 an ounce.
Silver gained 0.3 percent to $15.16 per ounce having touched its lowest level since late December at $14.90 in the previous session, while platinum rose 1.6 percent to $859.18.
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