British lawmakers on Wednesday rejected leaving the European Union without a deal and paved the way for a vote that could delay Brexit until at least the end of June.
United States gold futures rose 0.5 percent to $1,305.10 an ounce.
Spot gold was up 0.2 percent at $1,304.26 per ounce after touching its highest since 1 March at $1,305.69 earlier in the session.
"It is a combination of factors that have weighed on gold; weak Chinese data that is weighing on industrial demand for the metal, risk-on sentiment, rebounding yields, a higher dollar and stronger United Kingdom stocks", said Forex.com analyst Fawad Razaqzada.More news: Cyclone Idai to hit Zimbabwe
For now, investors are eyeing the UK Parliament vote to trigger Article 50 with no-deal. Another vote is set for Thursday to consider extending the Brexit deadline if today's no-deal Brexit vote fails.
However, analysts said the metal may soon have a turn of fortune on expectations that the U.S. Federal Reserve would refrain from raising interest rates after their policy meeting next week.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the United States dollar.
The dollar index dropped about 0.3 percent in the previous session on the tame U.S. inflation data, making bullion cheaper for investors holding other currencies.More news: Google killed over 2bn bad ads in 2018
The disappointing United States data, which followed a spate of weak reports from other economies, cascaded concerns on slowdown in global growth. "We don't see a need for the Fed to be so hawkish at the moment, and that could have played a small hand in gold's rally", said Phil Streible, senior commodities strategist at RJO Futures in Chicago.
Gold is facing stiff resistance at the $1,300 mark, having failed to significantly break above the key psychological ceiling, despite recent momentum on the back of the dollar's declines fuelled by weak U.S.jobs data and modest retail sales in January.
Gold futures on the COMEX division of the New York Mercantile Exchange settled higher on Wednesday.
Palladium inched 0.1 percent higher to $1,557.51 per ounce, while platinum dipped 1.6 percent to $823.77. Silver was up 0.1 percent to $15.46 per ounce.More news: Royal household split - Prince Harry and Meghan go at it alone