|21 October, 2019

Gold holds steady above $1,490 on Brexit uncertainties

Spot gold edged 0.1% higher to $1,490.60 an ounce

Gold bars at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. Image used for illustrative purposes.

Gold bars at the Austrian Gold and Silver Separating Plant 'Oegussa' in Vienna, Austria, March 18, 2016. Image used for illustrative purposes.

REUTERS/Leonhard Foeger

Gold prices held ground above $1,490 an ounce in early Asian trade on Monday as uncertainties swirled over Brexit delay, though a firmer dollar weighed on the safe-haven metal.

FUNDAMENTALS

Spot gold edged 0.1% higher to $1,490.60 an ounce by 0047 GMT. U.S. gold futures were little changed at $1,494.20.

Palladium was up 0.2% at $1,757.10 an ounce, after gaining about 3.3% in the previous week. The autocatalyst metal hit a record high of $1,783.21 on Thursday.

British Lawmakers on Saturday voted to withhold a decision on Prime Minister Boris Johnson's deal, a move that forced him to seek from the EU a third postponement of Britain's departure from the bloc.

The EU will play for time rather than rush to decide on Johnson's reluctant request to delay Brexit again, diplomats with the bloc said after a 15-minute meeting on Sunday.

The British government has insisted Brexit will take place on Oct. 31, but uncertainty over the request for a delay and the Parliament's response has kept markets on the edge.

A firm dollar against a basket of major currencies limited gold's gains.

The long-standing Sino-U.S. trade war has taken a toll on economies around the world with Japan's exports down for a 10th straight month, and South Korean exports plunging 19.5% over the first 20 days of October.

Investors now await a U.S. Federal Reserve meeting at the end of the month that could offer further signs of monetary easing.

At least 15 gold miners were killed on Saturday when a dam collapsed, flooding an artisanal mining encampment in a remote part of Siberia, officials said.

The world's second-biggest gold producer Barrick Gold said it had reached a deal to settle a long-running tax dispute between Tanzania and mining group Acacia.

DATA/EVENTS (GMT) 0600 Germany Producer Prices MM, YY Sept (Reporting by Karthika Suresh Namboothiri in Bengaluru; Editing by Subhranshu Sahu)

© Reuters News 2019

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