PRECIOUS-Gold firm ahead of Brexit vote but risk mood caps gains

* Markets eye Fed talks next week
* Silver extends gains for fifth consecutive session

(Adds comment; updates prices)
By Karthika Suresh Namboothiri
Oct 22 (Reuters) - Gold edged higher on Tuesday ahead of a
crucial vote by British lawmakers on the Brexit withdrawal
agreement, but buoyant Asian shares on progress in U.S.-China
trade talks limited gains.
Spot gold XAU= inched 0.2% higher to $1,487.20 per ounce
as of 0758 GMT. U.S. gold futures GCcv1 also gained 0.2% to
$1,490.30.
In the latest on the Brexit proceedings, British Prime
Minister Boris Johnson's parliamentary battle starts again, when
lawmakers will debate and vote on the Withdrawal Agreement Bill,
the detailed legislation that puts his exit deal into British
domestic law. Markets gained overnight on Wall Street with the benchmark
S&P 500 stock index rising to within striking distance of a
record high on reports of progress in U.S.-China trade talks.
MSCI's broadest index of Asia-Pacific shares outside Japan
.MIAPJ0000PUS gained 0.4% on Tuesday. MKTS/GLOB .N
China and the United States have achieved some progress in
their trade talks, Chinese Vice Foreign Minister Le Yucheng said
on Tuesday, adding that as long as both sides respected each
other, no problem could not be resolved. Le's comments came a day after U.S. President Donald Trump
spoke of optimism about a deal, while White House adviser Larry
Kudlow said tariffs on Chinese goods scheduled for December
could be withdrawn if talks go well. "Equities markets are in a risk-on mode, and there seems to
be a lack of support for gold prices and precious metals," said
Margaret Yang Yan, a market analyst at CMC Markets, adding that
fears of a no-deal Brexit had ebbed and progressing U.S.-China
trade talks gave markets some relief.
"This (slip in prices) does not mean gold will continue to
decline, because the market sees the Fed cutting another 25
basis points in its October meeting. For now it still looks like
a healthy correction," Yan said
Investors are awaiting a U.S. Federal Reserve meeting at the
end of the month that could offer further signs of monetary
easing. Lower interest rates reduce the opportunity cost of
holding non-yielding bullion. FED/DIARY
"Though we remain optimistic on safe-haven appeal for Q4,
traders should take caution at key support level of $1,480 as
strong technical selling may drive gold prices towards $1,473
and $1,459 in the near term," Phillip Futures analyst Benjamin
Lu said.
Among other precious metals, silver XAG= rose 0.3% to
$17.61 an ounce, extending gains for a fifth straight session.
Platinum XPT= dipped 0.1% to $887.11 and palladium XPD=
gained 0.3% to $1,763.05 an ounce.