11.12.201806:13:00UTC+00Gold Inches Higher On Dollar Weakness

Gold prices inched higher on Tuesday and the dollar softened amid expectations that the U.S. Federal Reserve may take a wait-and-see attitude towards future rate hikes.

However, investors are pricing in a 73 percent chance of a rate hike following the December 18-19 meeting.

Spot gold rose 0.31 percent to $1,247.59 per ounce after hitting its highest level in nearly five months at $1,250.55 in the prior session. U.S. gold futures were 0.29 percent higher at $1,253.05 per ounce.

Gold is benefiting from a weakening U.S. dollar and a stock-market turmoil amid a plethora of political and economic risks.

After calling off a crunch House of Commons vote, U.K. Prime Minister Theresa May will now meet European leaders and EU officials in the hope of clinching a better Brexit deal.

Italy's budget dispute with Brussels is set to escalate in coming weeks, as the government hasn't reached a consensus on the budget yet.

The U.S.-China trade war is still on despite a trade war truce struck at the G20 summit.