2018.11.2106:12:00UTC+00Gold Inches Higher As Dollar Eases

Gold prices were slightly higher on Wednesday as the dollar eased in subdued trade ahead of the Thanksgiving holiday.

Spot gold rose 0.31 percent to $1,222.78 per ounce while U.S. gold futures were up 0.17 percent at $1,223.30 per ounce.

The dollar weakened and equities recovered some ground after media reports suggested that Italy would compromise with the European Union on certain aspects of its budget.

Newspaper La Stampa reported that Italian Deputy Premier Matteo Salvini was willing to reduce the planned spending on a citizen's income and the unwinding of a previous pension reform.

Meanwhile, the latest headlines floating on the wires suggest that the European Commission has rejected Italy's revised budget proposals and made a recommendation to adopt a disciplinary procedure against the country for excessive debt.

Traders also keep an eye on U.S.-China tensions ahead of G20 leaders' summit later this month in Argentina.