Gold steady as Brexit deal lifts stocks, pressures dollar

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Published: October 18, 2019 7:52:32 AM

Asian shares inched higher following Britain's deal with the European Union, with MSCI's broadest index of Asia-Pacific shares outside Japan up 0.1%.

Gold prices, European Union, dollar, MSCI, US gold futures, US-China trade tensions, global economySpot gold was unchanged at ,491.62 an ounce as of 0057 GMT. (Reuters photo)

Gold prices held steady on Friday after Britain managed to eke out a deal for its exit from the European Union, lifting risk appetite, while a sluggish dollar provided support to the metal.

FUNDAMENTALS

* Spot gold was unchanged at $1,491.62 an ounce as of 0057 GMT. U.S. gold futures shed 0.2% to $1,495.40 per ounce

* Asian shares inched higher following Britain’s deal with the European Union, with MSCI’s broadest index of Asia-Pacific shares outside Japan up 0.1%.

* The dollar slipped to a near eight-week low in the previous session, keeping gold prices propped up.

* European Union leaders unanimously backed a new Brexit deal with Britain on Thursday, leaving Prime Minister Boris Johnson facing a battle to secure the UK parliament’s backing for the agreement if he is to take Britain out of Europe on Oct. 31.

Also read| Global markets: Asian stocks track Brexit deal cheer but China caution prevails

* Johnson said he was confident that parliament would approve the deal. But the arithmetic in the vote is not simple.

* Lifting gold’s safe-haven appeal, weak retail sales data and industrial output report out of the United States fanned fears about the health of the world’s biggest economy, amid the prolonged Sino-U.S. trade dispute.

* The Chinese commerce ministry said on Thursday that China hoped to reach a phased agreement with the United States over trade as early as possible, and make progress on cancelling tariffs on each others’ goods.

* China is expected to post its weakest economic growth in at least 27-1/2 years later in the session, raising pressure on Beijing to roll out more stimulus to counter the effects of the costly trade war.

* The International Monetary Fund on Thursday welcomed signs of a de-escalation in U.S.-China trade tensions but said an urgent updating of trade rules was needed to restore strong growth to the global economy.

* Palladium was flat around $1,758.53 after having notched a fresh high of $1,783.21 an ounce in the previous session.

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