“There are a lot of uncertainties regarding the Trump reflation of trade after the failure last week to overhaul Obamacare, and uncertainty in Europe with French elections coming up and the official start of Brexit negotiations,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt.
“The general picture is still positive (for gold),” he said.
Prime Minister Theresa May filed formal Brexit divorce papers yesterday, triggering years of negotiations that will test the cohesion of the EU.
A firmer dollar capped gains in gold as it hit a fresh eight-day high after Chicago Fed President Charles Evans said he supported one or two more US rate hikes this year.
“A resurgent US dollar, along with higher US yields and equities has taken the momentum out of the gold rally for now,” said Jeffrey Halley, senior market analyst at Oanda.