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PRECIOUS-Gold rises as updated Brexit deal weakens dollar vs pound


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(Updates prices)

* Market eyes UK vote on May's Brexit deal later today

* Gold may retest a resistance at $1,301/oz - analyst

* U.S. CPI data due at 1230 GMT

By K. Sathya Narayanan

March 12 (Reuters) - Gold prices rose on Tuesday as thedollar weakened against the pound after the European Commissionaccepted amendments to the UK's Brexit deal, although gains werelimited as the agreement also buoyed sentiment for riskierassets.

Spot gold XAU= rose 0.1 percent to $1,294.90 per ounce asof 0756 GMT, while U.S. gold futures GCv1 added 0.3 percent to$1,294.70 an ounce.

The dollar .DXY was down 0.2 percent against its majorpeers, making gold an attractive investment for non-U.S.currency holders, while the sterling soared after the Brexitdeal changes. FRX/

European Commission head Jean-Claude Juncker on Mondayagreed an updated Brexit deal with British Prime MinisterTheresa May to make the agreement more palatable to UKlawmakers. urn:newsml:reuters.com:*:nL8N20Y6Z4

"There was a bit of move out of the U.S. dollar which liftedgold slightly," said Kyle Rodda, a market analyst with IGMarkets in Melbourne, adding there is also increased riskappetite in the market which is capping gold's gains.

The updated Brexit deal boosted Asian shares ahead of a votein the British parliament on a divorce agreement. MKTS/GLOB

"What would be very interesting to watch in the coming daysis how the Brexit talks play out," said Rodda, adding that alower chance of the UK crashing out of the EU with no deal willprop up the pound and push down the dollar, supporting bullion.

Gold also found some support from increasing concerns aboutglobal growth. U.S. retail sales rose modestly in January, butthe recovery was not seen strong enough to alter the course of aU.S. economy that was losing momentum in early 2019. urn:newsml:reuters.com:*:nL1N20V1FG

"Market is now awaiting U.S. consumer prices index (CPI)data and any changes may affect the stance of Federal Reserve,"said Vandana Bharti, assistant vice-president of commodityresearch at SMC Comtrade.

"There is no clear direction for gold and for a period ofone week or two we can see it trading around $1,280 and $1,310range."

Gold may retest a resistance at $1,301, a break above whichcould lead to a gain into the range of $1,307-$1,313, accordingto Reuters analyst Wang Tao. TECH/C

Among other precious metals, palladium XPD= was up 0.2percent at 1,539.12 per ounce, while Platinum XPT= gained 0.4percent to $827.74 per ounce.

Silver XAG= advanced 0.4 percent to $15.37 per ounce,after touching its highest since March 1 earlier in the session. (Reporting by K. Sathya Narayanan in Bengaluru; editing byRashmi Aich and Shreejay Sinha) ((Sathya.Narayanan@thomsonreuters.com; within U.S. +1 651 8485832, outside U.S. +91 80 6749 3226/1298; Reuters Messaging:sathya.narayanan.thomsonreuters.com@reuters.net))






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