Gold prices recovered from two-week lows on Tuesday to trade higher as doubts resurfaced about the progress of trade talks between China and the United States.
Spot gold rose 0.2% to $1,457.07 per ounce by 0658 GMT, but still held close to its lowest since Nov. 12 hit earlier in the session. US gold futures were little changed at $1,456.90.
Talks between the two countries have never materialised in the past, "so unless and until a deal is signed and sealed, we will see gold consolidate only in a smaller range", said Ajay Kedia, director at Kedia Advisory in Mumbai.
Chinese Vice Premier Liu He, and US Trade representative Robert Lighthizer and Treasury Secretary Steven Mnuchin held a phone call on issues related to a "phase one" agreement, however lack of clarity failed to boost investors' confidence for long.
Also, recent bills passed by the United States supporting anti-government protesters in Hong Kong remain a point of contention between Washington and Beijing.
"There hasn't been much substantial detail other than they (US, China) are working very closely, and besides the US, other parts of the world are still showing slow economic growth, so gold will still be supported," Phillip Futures analyst Benjamin Lu said.
Gold, considered a safe asset in times of political and economic uncertainty, has gained more than 13% this year, mainly due to the tariff dispute and its impact on global economic growth.