Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

PRECIOUS-Gold makes modest gains as Britain sets Brexit deadline

Published 03/10/2016, 10:47 pm
PRECIOUS-Gold makes modest gains as Britain sets Brexit deadline
UK100
-
XAU/USD
-
XAG/USD
-
DBKGn
-
GC
-
SI
-
PA
-
PL
-
IMPJ
-

* Britain's March Brexit deadline sparks modest rise only

* Trading volumes muted due to China holiday

* Buyers of physical metal cash in gains as pounds falls (Updates prices; adds India import data)

By Swetha Gopinath

LONDON, Oct 3 (Reuters) - Gold prices were largely unmoved following Britain's decision to set a March deadline to start divorce proceedings from the European Union, edging only slightly higher as investors waited to gauge any concrete impact from Brexit.

Spot gold XAU= was up 0.10 percent at $1,317.16 an ounce at 1124 GMT, with volumes muted due to a holiday in China.

Markets in China are closed from Oct. 1-9 for the Chinese National Day holidays. gold futures GCcv1 rose 0.25 percent to $1,320.40.

British Prime Minister Theresa May's move on Sunday to set out the timing for when Britain would trigger the process for leaving the EU had little impact on gold demand. deadline was unlikely to have an immediate effect on gold prices, with any impact being seen in the mid-to-long term, Julius Baer analyst Carsten Menke said.

A rise in sterling gold prices after a drop in the pound to three-year lows versus the euro, and three-month lows against the dollar, prompted some British buyers of physical metal to cash in gains. FRX/

"We're seeing some selling back, because obviously sterling has collapsed a bit, which has pushed the gold price up in sterling terms, which has seen people taking a profit and selling rather than buying," one London-based gold dealer said.

Also weighing on gold were firmer stock markets, including Britain's FTSE 100 .FTSE , which rose more than 1 percent, partly helped by the drop in sterling, as a weaker pound typically benefits the FTSE's export-driven, internationally focused companies.

Reports that Deutsche Bank (DE:DBKGn) was negotiating a reduced settlement with the U.S. Department of Justice also boosted risk appetite among investors. will look to U.S. non-farm payrolls report on Friday to provide more clarity on whether the U.S. Federal Reserve is on track to raise interest rates by the end of this year.

Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar and making commodities more expensive for non-U.S.-firms.

Separately, India's gold imports fell for a ninth straight month in September as weak retail demand and higher discounts prompted banks and refineries to cut overseas purchases of the bullion. was the only precious metal that was trading lower on Monday after South Africa's biggest platinum mine-workers' union signed a two-year wage agreement with Impala Platinum IMPJ.J . XAG= rose 0.08 percent to $19.16 an ounce,

platinum XPT= slipped 0.85 percent to $1,013.40, and palladium XPD= was up 0.54 percent at $721.47.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.