Gold edges higher on soft dollar, but Brexit news curb gains

Gold prices rose marginally during the European session on Thursday, to keep its gains for the second straight day, lifted by the US dollar's drop against major currencies, while the gaine are epped by news of a Brexit final deal between the British government and the European Commission after their talks.

Gold rose by 0.2% to $1,493.10 an ounce, from the opening of $1,489.85, with a session-low of $1,483.89.

Yesterday, gold closed higher by 0.6%, marking its second daily gain in the last 3 days, with most dollar-dominated metals rising.

Otherwise, the dollar index fell by 0.5%, to extend its losses for the third day to 2-month low of 97.50 points, and reflecting the lingering US dollar drop against major currencies.

This sharp drop is due to weak demand on greenback after it lost its charm as the best investment in the Forex market, as investors shifted to euro and sterling a signicent thaw of the Brexit 

According to Bloomberg report, the European Commission President, Jean-Claude Juncker, announced today a final agreement on the UK departure from the European Union, after the intensive talks last night, which comes ahead of EU leaders summit in Brussels later today.

The report showed that a draft deal has been made and will be presented to EU leaders summit at their summit on Thursday and Friday, and to the British parliament on Saturday.

Gold holdings at the SPDR Gold Trust, declined for the second straight day by 1.7 metric tonnes yesterday, with a total of 918.19 mt (the lowest since September 23rd).