Gold prices drifted lower on Monday, as the dollar firmed up and traders looked to pick up equities ahead of resumption of trade talks between the US and Chinese officials.
Spot gold was down 0.2% to $1,489.80 per ounce, as of 0047 GMT.
The price of gold reversed losses Tuesday afternoon, as investors cut ties to riskier assets over concerns that upcoming U.S.
USA gold futures were up 0.3% at $1,509.10. -China trade talks and Brexit drove a decline in stock markets and prompted investors to seek refuge in the safe-haven metal.
U.K. Prime Minister Boris Johnson failed to persuade German Chancellor Angela Merkel in an early telephone call that his proposals for avoiding border checks in Ireland could be squared with the EU's desire for control over the borders of its customs union and single market. The European Union then accused Britain of playing "a stupid blame game".
Neil Wilson, chief markets analyst at Markets.com, says that gold is now a "good buy", and China's increase "chimes with the flows we've seen in recent weeks that's pushed prices a lot higher".
In Washington, Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer are set to resume top-level trade talks on Thursday, ahead of a scheduled increase in U.S. tariffs on $250 billion worth of Chinese goods on October 15.
"If we do see a full collapse (in trade talks) unexpectedly, that will lead to a lot of risk aversion which could be the bullish catalyst gold needs", Erlam said, adding there was a lot of uncertainty over the Fed minutes as well.
Ruffles in the US political front also supported gold, with a second whistleblower coming forward with knowledge of Mr Trump's attempts to get the Ukrainian president to investigate a political rival, amid an impeachment battle that threatens the US President's administration. China will return to global financial markets after a week-long holiday, which could move the price of gold higher as China is the world's largest gold consumer.
Holdings of the world's largest gold-backed ETF, SPDR Gold Shares, held close to their highest in almost three years at about 923.76 tonnes.
Silver futures for December ended down $0.085, at $17.540 an ounce, while Copper futures for December settled at $2.5770 per pound, gaining $0.0145.