Britain on Monday urged businesses to prepare for Brexit, after the country clinched a trade deal with the European Union on Thursday that preserved zero-tariff and zero-quota access to the bloc's single market.
"Heightened inflation expectations due to the US fiscal stimulus package have seen gold pick up as an inflation hedge," said Howie Lee, an economist at OCBC Bank.
Bullion had jumped more than 1pc earlier in the session, helped by reports that U.S. congressional leaders reached agreement on a $900 billion package.
U.S. Congressional lawmakers scrambled to pass a coronavirus aid package on Thursday with both parties saying that failure to reach an agreement was no longer an option.
Mathematically, this wave is closely related to the preceding downtrend from the Nov. 9 high of $1,965.33. A break above $1,846 could lead to a gain to $1,861.
Resistance is at $1,846, a break above which could lead to a gain to $1,861. On the daily chart, gold failed to break a resistance at $1,865, the 50% retracement on the fall from $1,965.33 to $1,764.29.
There is the anticipation that some of the chaos that has resulted from the pandemic is going to subside (now that) they are beginning to disperse the vaccine in some parts of the world.
Spot gold fell 0.7pc to $1,857.70 per ounce by 1017 GMT, after hitting its highest since Nov. 23 at $1,875.07 on Tuesday. U.S. gold futures slipped 0.7pc to $1,862.60.
Spot gold fell 0.7% to $1,858.80 per ounce by 0600 GMT, after hitting its highest since Nov. 23 at $1875.07 on Tuesday, while US gold futures fell 0.6% to $1,864.00 per ounce.