PRECIOUS-Gold inches up on Brexit jitters, risk-on mood limits gains

* Gold range-bound between $1,474-$1,510/oz - analyst
* HK risks becoming new flashpoint in U.S.-China relations
* Holdings in SPDR Gold Trust fell 0.22% on Tuesday

(Updates prices, details on Brexit)
By Eileen Soreng
Oct 16 (Reuters) - Gold prices edged higher on Wednesday
after shedding nearly 1% in the previous session, on
uncertainties surrounding Britain's negotiations to leave the
European Union, while a risk-on sentiment capped the bullion's
gains.
Spot gold XAU= was up 0.1% at $1,482.54 per ounce as of
0725 GMT. U.S. gold futures GCv1 were 0.2% higher at $1,486.90
per ounce.
"There are some uncertainties since there is a lot to go
through on Brexit. For instance even if both EU and UK
negotiators agree on terms it still has to go through the
parliament," AxiTrader market strategist Stephen Innes said.
However, a signed Brexit deal could push yields higher,
which fundamentally are significant headwinds over the near term
for gold, Innes added.
Higher yields tend to lift the dollar and pressure gold,
which costs to store and insure but does not pay interest.
Brexit talks will resume in Brussels on Wednesday morning
after "constructive" negotiations that went into the night on
Tuesday, a British spokesman said. Michel Barnier, EU negotiator, had made it clear at a
meeting of the bloc's ministers in Luxembourg that if an
agreement could not be reached on Tuesday, it would be too late
to send anything for leaders to approve at the summit in
Brussels on Thursday and Friday.
Gold also found some support from fresh U.S.-China strains
over Hong Kong.
The U.S. House of Representatives on Tuesday passed four
pieces of legislation taking a hard line on China, three related
to the protests in Hong Kong. Beijing opposed the new measures and urged lawmakers to stop
interfering.
So far the trade negotiations were going well between U.S.
and China, but if we see a flip over this issue we might see
gold moving up, Phillip Futures analyst Benjamin Lu said.
"Gold is still relatively range bound between $1,474 and
$1,510."
Meanwhile, many Asian share markets held some gains in the
wake of Tuesday gains by U.S. and European equities, while the
dollar was slightly under pressure against a basket of six major
currencies. MKTS/GLOB USD/
Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, fell 0.22% to 919.66 tonnes on
Tuesday. Among other precious metals, deficit-hit palladium XPD=
rose 0.2% to $1,736.39 an ounce, hovering near its record high
of $1,739.93 hit on Tuesday.
Silver XAG= dipped 0.5% to $17.29 per ounce and platinum
XPT= slipped 0.7% to $882.49.