Wires

PRECIOUS-Gold inches up on Brexit tumult, trade truce hopes limit gains

K. Sathya Narayanan

* UK PM Boris Johnson faces votes at 1800 GMT

* Traders see 91% chance for 25-bps rate cut by Fed- FEDWATCH (Adds comments, updates prices)

Oct 22 (Reuters) - Gold posted modest gains on Tuesday as uncertainties surrounding Britain's exit from the European Union ahead of another crucial Brexit vote offset pressure from a firm dollar and rising optimism for a U.S.-China trade deal.

Spot gold was up 0.1% at $1,485.95 per ounce as of 10:28 a.m. EDT (1428 GMT). U.S. gold futures were also up 0.1%, at $1,489.

Bullion is supported by "all the international worries that investors are facing for the most part. Market participants are looking at all the Brexit news and it's a new worry, and new worries adds to support for gold," said George Gero, managing director at RBC Wealth Management.

"And the reason gold is not having a stronger rally is because of the U.S.-China tariffs talks (optimism)."

British Prime Minister Boris Johnson faces two pivotal votes in parliament that will decide whether he can deliver on his pledge to lead Britain out of the EU in nine days' time.

Lawmakers vote around 1800 GMT on the 115-page Withdrawal Agreement Bill and then on the government's extremely tight timetable for approving the legislation.

Meanwhile, China and the United States have achieved some progress in their trade talks, Chinese Vice Foreign Minister Le Yucheng said on Tuesday.

Those 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about a deal, while White House adviser Larry Kudlow said tariffs on Chinese goods scheduled for December could be withdrawn if talks went well.

Also limiting gold's upside was a firm dollar, which moved away from last week's over two-month low, making greenback denominated bullion costlier for investors holding other currencies.

"The precious metal is waiting for the next big theme or market-moving event that will influence global sentiment and risk appetite," FXTM analyst Lukman Otunuga said in a note.

"Until something fresh is brought into the picture, gold is positioned to trade within a modest range in the short to medium term," Otunuga added.

Investors are also awaiting the Federal Reserve's month-end monetary policy meeting for further clarity on rates cuts this year.

Federal fund futures imply that traders see a 91% chance for a 25 basis-point rate cut by the U.S. central bank in its month-end monetary policy meeting.

However, amid mixed signals from Fed policymakers it is unclear if they, overall, will support a cut.

Reflecting sentiment, holdings of gold in exchange traded funds tracked by Refinitiv have jumped to their highest since mid-2013.

Elsewhere, silver slipped 0.2% to $17.52 an ounce. Platinum was up 0.1% at $888.47 and palladium was 0.3% lower at $1,753.16 an ounce. (Reporting by K. Sathya Narayanan in Bengaluru Editing by Marguerita Choy)