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Gold gains some ground, but rate hike views weigh on market

Gold prices edged higher on Wednesday after the previous session's sharp fall, but rising U.S. interest rates and lingering Sino-U.S. trade tensions continued to weigh on the market with investors selling the metal at small rallies.

Spot gold XAU= was up 0.3 percent at $1,204.64 an ounce at 0329 GMT. Prices hit their highest since Aug. 10 at $1,214.28 on Tuesday, but closed 0.8 percent lower as U.S. Treasuries rose after the United States and Mexico struck a trade deal.

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