2019.03.0605:49:00UTC+00Gold Prices Mixed In Cautious Trade

Gold prices were mixed on Wednesday after rebounding from over five-week lows in the previous session.

While a pause in global equities rally aided demand, overall gains remained capped by a firmer U.S. dollar on the back of encouraging housing and service-sector activity data released overnight.

Reports on private sector employment, the U.S. trade deficit may attract attention later today along with the Federal Reserve's Beige Book.

Spot gold dropped 0.15 percent to $1,285.90 per ounce, while U.S. gold futures were up about 0.2 percent at $1,286.75 per ounce.

The dollar index held near a two-week high hit in the previous session as investors awaited more clarity on Sino-U.S. trade talks and Brexit negotiations.

The British pound extended losses for a fifth day amid fears that negotiators are struggling to make a breakthrough in crunch Brexit talks.

Geopolitical tensions also returned to the fore, with the U.S. saying it would ramp up sanctions against North Korea if Pyongyang fails to give up its "nuclear weapons program and everything associated with it."

The warning came amid reports that North Korea has started rebuilding part of a missile launch site it began to dismantle after pledging to do so in the first summit with Trump last year.