WASHINGTON (dpa-AFX) - Gold prices edged higher on Wednesday even as the dollar rose against the euro on worries about the outlook of the euro zone economy after U.K. Prime Minister Theresa May's EU withdrawal plan suffered a historic defeat in the House of Commons.
Spot gold rose 0.23 percent to $1,289.12 per ounce while U.S. gold futures were up marginally at $1,289.05 per ounce.
After lawmakers voted down May's deal to leave the European Union, the PM is now facing a motion of no confidence in her government.
If May survives the vote of no confidence, there will not be a general election and she has to come back to Parliament with a Plan B.
Meanwhile, after a contraction in Chinese exports engendered fears of a slowdown in the world's second-largest economy, various Fed policymakers on Tuesday said the U.S. central bank should pause further rate hikes in 2019.
Gold prices typically rise on expectations of lower interest rates, as they reduce the opportunity cost of holding non-yielding bullion.
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