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Last Updated : Oct 23, 2019 08:47 AM IST | Source: Reuters

Gold bides time as traders await clarity on Brexit

China and the United States have achieved some progress in their trade talks, Vice Foreign Minister Le Yucheng said on Tuesday.

Gold prices were steady on Wednesday, as investors waited for clarity on Brexit confusion after UK lawmakers voted for Prime Minister Boris Johnson's divorce plan but opposed his tight timetable to complete the legislative process in three days.

Spot gold was unchanged at $1,488.50 per ounce, as of 0125 GMT.

US gold futures rose 0.3 percent to $1,491.30 per ounce.


EU leaders should delay Brexit after Prime Minister Boris Johnson paused legislation on his deal following a parliamentary defeat, EU Council President Donald Tusk said on Tuesday, as Britain spins towards a possible election to break the impasse.

Asian shares and US stock futures took a hit after British lawmakers rejected the government's proposed timetable for passing legislation to ratify its deal to exit the European Union.

Meanwhile, Federal fund futures imply that traders see a 91.4 percent chance for a 25 basis point rate cut by the US central bank in its month-end monetary policy meeting.

On the trade war front, China and the United States have achieved some progress in their trade talks, Vice Foreign Minister Le Yucheng said on Tuesday, adding that as long as both sides respected each other, no problem could not be resolved.

White House economic adviser Larry Kudlow on Monday expressed optimism about ongoing US-China trade talks, and said that tariffs scheduled for December could be withdrawn if negotiations continue to go well.

The two major economies have imposed a series of tit-for-tat tariffs over the past 15 months that have hit financial markets and stirred up global recessionary fears.

The non-yielding bullion is often seen as a safer investment during times of political and financial uncertainty.

SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.54 percent to 919.66 tonnes on Tuesday from 924.64 tonnes on Monday.

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First Published on Oct 23, 2019 08:47 am
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