Gold Inches Up Close To A Two-Week High Amid Brexit Woes

Gold prices dip on dollar recovery over Brexit relief

Gold prices dip on dollar recovery over Brexit relief

The dollar was down about 0.2% against its major peers, making gold an attractive investment for non-US currency holders, while the sterling rose sharply after the Brexit deal changes.

Spot gold rose 0.4 per cent to $US1,298.63 per ounce, while United States gold futures settled 0.5 per cent higher at $US1,297.70. Platinum for April delivery was up 15.1 dollars, or 1.85 percent, to settle at 831.90 dollars per ounce.

USA retail sales rose 0.2 in January, surprising economists who had expected an unchanged result.

On the flip side, gold prices have gained about 13 percent since touching over 1-1/2 year lows in August last year, with recent gains driven by the U.S. Federal Reserve's patient stance on monetary policy and escalating worries over a global economic slowdown.

The dollar index dropped about 0.3 percent in the previous session on the tame USA inflation data, making bullion cheaper for investors holding other currencies. "Traders are buying into the fact that they are expecting a very dovish US Fed announcement", Haberkorn said.

Gold is facing stiff resistance at the $US1,300 mark, having failed to significantly break above the key psychological ceiling, despite recent momentum on the back of the United States dollar's declines fuelled by weak U.S. jobs data and modest retail sales in January. Later today, the British Parliament will vote on whether to support a no-deal Brexit.

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The press service of the Israel Defence Forces confirmed that the sirens had sounded for the first time since summer 2014. The officials arrived in the Gaza Strip earlier in the day for talks with Hamas leaders on a possible truce with Israel.

British lawmakers on Wednesday rejected leaving the European Union without a deal and paved the way for a vote that could delay Brexit until at least the end of June.

Gold futures on the COMEX division of the New York Mercantile Exchange settled higher on Wednesday.

"There was a bit of move out of the dollar that lifted gold slightly", said Kyle Rodda, a market analyst with IG Markets in Melbourne, adding there is also increased risk appetite in the market which is capping gold's gains. On the technical front, "gold is now heading towards the next potential resistance around $1313, a former support level", said analyst Fawad Razaqzada.

Among other precious metals, palladium was up 0.2% at 1,539.62 an ounce.

U.S. gold futures were up 0.1 percent at $1,292.90 an ounce.

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