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PRECIOUS-Gold eases on Brexit deal, global growth concerns limit losses

Published 18/10/2019, 11:03 pm
© Reuters. PRECIOUS-Gold eases on Brexit deal, global growth concerns limit losses
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* Palladium eyes strongest week since Sept. 13

* China's Q3 economic growth weakest in nearly three decades

* Brexit parliament vote on Saturday

* GRAPHIC-Gold vs currencies: http://tmsnrt.rs/1JxbO6Y

(Updates prices)

By Sumita Layek

Oct 18 (Reuters) - Gold fell on Friday after a Brexit deal was struck by Britain and the European Union, though losses were limited by weak economic data from the United States and China.

Spot gold XAU= was down 0.2% at $1,489.02 an ounce at 1143 GMT. U.S. gold futures GCv1 fell 0.4% to $1,492.50.

The European Union backed a new Brexit deal with Britain on Thursday, more than three years after Britons voted in a referendum to leave the bloc. focus is on Brexit. The risk of a no deal Brexit has dropped and overall the sentiment on the Brexit front has improved a lot, but now it's just the uncertainty of the vote," said ABN Amro analyst Georgette Boele.

Prime Minister Boris Johnson now faces a Brexit showdown with parliament on Saturday. the Brexit deal goes through, there will be a bit of pressure on gold, because there are a few investors who bought gold on the Brexit story," Boele said.

Gold denominated in sterling XAUGBP=R hovered close to a near three-month low hit on Thursday.

Meanwhile, China's third-quarter economic growth slowed more than expected to its weakest pace in almost three decades. came after U.S. data showed retail sales falling for the first time in seven months in September, suggesting that manufacturing weakness could be spreading to the broader economy, while industrial output for last month also dipped. data out of U.S. and China are in favour of further (monetary policy) easing that will be supportive for gold," said SP Angel analyst Sergey Raevskiy.

The underlying momentum in gold is still positive because stimulus from central banks is still on the agenda, the economy is struggling to pick up in the face of trade war and there are geopolitical risks in the Middle East, Turkey and Syria while Brexit is still not quite out of the way, he added.

The U.S. Federal Reserve is set to meet at the end of the month to decide on further interest rate cuts this year. FED/

Palladium XPD= fell 0.1% to $1,757.07 an ounce, a day after hitting a record high of $1,783.21. The autocatalyst metal was up 3.4% on the week and on course for its biggest gain since the week ended Sept. 13.

"The palladium market is still structurally tight, keeping prices resilient, with intermittent volatility," ANZ Bank said in a note.

Platinum XPT= was down 0.4% at $884.07 while silver XAG= fell 0.3% to $17.45.

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