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Gold holds steady, US dollar rises with Brexit news
Gold held ground on Thursday as the dollar regained upward trajectory after news that cast Britain's Brexit agreement into uncertainty, investors seeking refuge from the political fallout sparking renewed interest in the metal.
Spot gold price remained untouched at $1,211.21 per ounce after a 1 percent increase in the previous session. To get the most appropriate information check daily updated gold rates in Dubai by business24-7.ae.
U.S. gold futures increased 0.1 percent to $1,211.60 per ounce.
The dollar gained momentum after Britain's Brexit deal with the European Union was thrown into turmoil, effectively making the bullion less appealing for buyers with different currency. Nonetheless some safe haven interest was turned to gold as a time tested store of value in times of political and economic unrest as stock markets dropped. If you want to get more information about where and when to buy gold online in Dubai you can read this article here: https://www.business24-7.ae/buy-gold-in-uae
ING analyst Warren Patterson was reported stating that uncertainty after resignations from the British cabinet following the draft Brexit agreement lended some support to gold prices in the immediate future, adding that while supported at $1,200 it will be tough to climb above $1,250 in the near future.
Brexit Minister Dominic Raab and Work and Pensions Minister Esther McVey resigned just 12 hours after PM May announced that a draft agreement had been made, saying they could not support it.
The U.S. dollar lowered investor interest in gold, as they chose to invest in the currency instead and showed to be the prevailing safe haven asset this year, with prices of gold droping 11 percent from an April peak, especially with the U.S. – China trade disputes and the rising U.S. interest rates in the background.
Gasoline and rental accommodation costs were among the prices raised in the U.S., general consumer prices reaching highest increase this year in October, which points to a steadily rising inflation that will most likely bring the Federal Reserve to increase interest rates again next month.
U.S. president Donald Trump and Chinese president Xi Jinping are likely to meet and discuss the ongoing trade tussles between the countries at the upcoming G20 summit in Argentina scheduled later this month.
ActivTrades chief analyst Carlo Alberto De Casa commented on gold prices having room to further recover it the price stays above $1,210 and an expected negative signal occuring if the price drops below the $1,200 psychological threshold.
Other indications of piqued interest in gold are also central banks gradually increasing their gold reserves and SPDR Gold Trust, the dominant gold exchange-traded fund, holdings remaining close to their peak in over two months, analysts reported.
Silver gained 0.1 percent at $14.15 per ounce after reaching multiple year bottom in the previous session at $13.85 and is likely to move up further if gold stays above $1,210.
Platinum dropped 0.6 percent to $829.74 an ounce, while palladium rose 0.5 percent to $1,130.30 per ounce.
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