Gold firms as dollar wilts on amended Brexit deal

BENGALURU, Mar 12 (Reuters): Gold edged higher on Tuesday, supported by a retreat in the dollar after an apparent breakthrough in Brexit negotiations between the EU and Britain, although rallying equities capped bullion's gains.

Spot gold rose 0.2 per cent to $1,295.89 per ounce as of 1055 GMT, while US gold futures were up 0.4 per cent at $1,296.20.

Some dollar weakness emerged due to the Brexit talks, in turn providing short-term support to gold prices, Capital Economics analyst Ross Strachan said.

The dollar fell from near three-month highs hit in the previous session, making bullion cheaper for holders of other currencies, while sterling soared.

Capping gold's rise, last-minute tweaks to Britain's arrangement for leaving the EU triggered gains in global stocks, having soothed investor worries about a possible no-deal exit.

British lawmakers were preparing to vote on a divorce deal at around 1900 GMT after Prime Minister Theresa May won fresh assurances from the EU.

"However, if the deal is voted through this time and risk appetite increases as a result, gold is likely to come under pressure again," Commerzbank analysts wrote in a note.