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Gold steadies as investors await signals on US-Sino trade, Brexit  

Gold steadies as investors await signals on US-Sino trade, Brexit  

Mubasher: Gold prices slightly changed earlier on Monday as markets were looking for further clarity on the trade negotiations between the US and China, according to Reuters.

In addition, Brexit uncertainty re-emerged after UK lawmakers delayed a crunch vote on Prime Minister Boris Johnson’s withdrawal deal.

By 7:20 am GMT, spot gold was flat at $1,490.23 per ounce, while US gold futures slipped slightly to $1,493.40 per ounce.

Asian stock markets edged higher, capping the precious metal’s gains.

“What has been supportive for gold are recessionary fears, and provided that remains in the headlines, it is a significant reason to stay long gold” AxiTrader market strategist Stephen Innes was quoted by Reuters.

The prolonged trade conflict between Washington and Beijing weighed on economies worldwide, as Japan’s exports dropped for the tenth month running, while South Korean outbound shipments slumped by 19.5% in October and Thai exports missing forecasts.

In China, new house prices rose at a steady pace last September, which allowed authorities to heave a sigh of relief, as they were worried over swelling debt and bubble risk.

Furthermore, in the UK, a cross-party group of lawmakers voted on Saturday to withhold a decision on Premier Johnson’s withdrawal deal, begrudgingly forcing him to seek a third Brexit delay from the European Union (EU).

The vote on postponing the UK’s departure from the bloc dampened optimism that a deal agreed last week will secure delivering an orderly Brexit.