(Updates prices)
* Asian shares, dollar's reaction to impeachment muted
* U.S. economy in good shape: Fed policymakers
* SPDR Gold Trust Holdings up 0.3%
By Asha Sistla
Dec 19 (Reuters) - Gold prices edged higher on Thursday after the U.S. House of Representatives voted to impeach President Donald Trump, stoking fears of political uncertainty in the world's largest economy.
Spot gold XAU= was up 0.1% at $1,476.69 per ounce, as of 0718 GMT. U.S. gold futures GCcv1 edged up 0.1% to $1,480.70 per ounce.
Trump became the third U.S. president to be impeached as the Democratic-led House formally charged him with abuse of power and obstruction of Congress in a historic step that will inflame partisan tensions across a deeply divided America. sentiment supported bullion, often seen as an alternative investment during times of political and financial uncertainty.
"The impeachment is resulting in a slight increase of the uncertainties and we're seeing gold inch higher on the back of that," said ANZ analyst Daniel Hynes.
"This news is also offsetting headwinds such as strong equity markets, the (U.S.-China) trade deal and better economic data."
Although the reaction to the impeachment was largely muted, Asian shares pulled back from a one-and-a-half year peak, while the U.S. dollar .DXY eased slightly against a basket of currencies, making gold cheaper for holders of other currencies. MKTS/GLOB USD/
If the U.S. Senate convicts, "which would be unexpected, then that throws next year's election in a very uncertain place," Ilya Spivak, a senior currency strategist at DailyFx said, adding that gold prices will then gain on risk aversion.
Capping further gains in bullion, China's finance ministry published a new list of six products from the United States that will be exempt from tariffs starting Dec. 26. U.S. Federal Reserve policymakers on Wednesday said the U.S. economy is in good shape following three interest-rate cuts this year, reiterating the consensus at the Fed for keeping borrowing costs where they are for the time being. U.S. November manufacturing data released earlier this week also cemented Fed's view. Gold is highly sensitive to any reduction in interest rates, which decreases the opportunity cost of holding non-yielding bullion. of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , rose 0.3% to 883.29 tonnes on Wednesday. GOL/ETF
Elsewhere, palladium XPD= edged up 0.4% to $1,930.18 per ounce. Prices of the autocatalyst metal had hit an all-time peak of $1,998.43 on Tuesday.
Palladium prices are within a whisker of breaking above $2,000 an ounce for the first time, with a gaping supply deficit fuelling a remarkable run. XAG= dipped 0.1% to $16.99 per ounce, while platinum XPT= slipped 0.4% to $931.68.