PRECIOUS-Gold bides time as traders await clarity on Brexit

Published 23/10/2019, 02:29
Updated 23/10/2019, 02:36
© Reuters.  PRECIOUS-Gold bides time as traders await clarity on Brexit

Oct 23 (Reuters) - 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.

FUNDAMENTALS

* Spot gold XAU= was unchanged at $1,488.50 per ounce, as

of 0125 GMT. U.S. gold futures GCv1 rose 0.3% 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 U.S. 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. MKTS/GLOB

* Meanwhile, Federal fund futures imply that traders see a

91.4% chance for a 25 basis point rate cut by the U.S. central

bank in its month-end monetary policy meeting. FEDWATCH

* 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 U.S.-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said that tariffs scheduled for December could be withdrawn if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 GLD , the world's largest gold-backed

exchange-traded fund, said its holdings fell 0.54% to 919.66

tonnes on Tuesday from 924.64 tonnes on Monday.

DATA/EVENTS (GMT)

0645 France Business Climate Mfg Oct

1400 EU Consumer Confid. Flash Oct

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