Gold prices edged higher on Wednesday after shedding nearly 1% in the previous session, on uncertainties surrounding Britain's negotiations to leave the European Union, while a risk-on sentiment capped the bullion's gains.

Spot gold was up 0.1% at $1,482.54 per ounce as of 0725 GMT. US gold futures were 0.2% higher at $1,486.90 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.

Higher yields tend to lift the dollar and pressure gold, which costs to store and insure but does not pay interest.

Gold also found some support from fresh US-China strains over Hong Kong.

The US House of Representatives on Tuesday passed four pieces of legislation taking a hard line on China, three related to the protests in Hong Kong.

"Gold is still relatively range bound between $1,474 and $1,510." Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.22% to 919.66 tonnes on Tuesday.