Gold scaled a near two-week peak yesterday, after reclaiming the key $1,300 level in the previous session, as investors opted for the safe-haven metal after British lawmakers rejected an amended exit deal, while a weaker dollar lent further support.
Spot gold was up 0,2 percent at $1,304.53 per ounce, as of 0704 GMT, after touching its highest since March 1 at $1,305.69 earlier in the session.
US gold futures rose 0,5 percent to $1,304.80 an ounce. The British Parliament rejected Prime Minister Theresa May’s deal to quit the European Union for a second time, deepening the country’s political crisis days before the planned departure date on March 29.
Asian shares drifted lower on Wednesday as a risk-off mood settled on markets after the Brexit vote.
Parliament will vote later in the day on whether to back a no-deal Brexit, and if that fails, a further vote today will decide whether to extend the Brexit deadline.
Meanwhile, US consumer prices rose for the first time in four months in February, but the pace of the increase was modest, resulting in the smallest annual gain in nearly 2-1/2 years, supporting the Federal Reserve’s ‘patient’ stance on US interest rate hikes. The weak US inflation data suggests that policy makers may hold back from additional rate increase, ANZ analysts said in a research note.
The disappointing US data, which followed a spate of weak reports from other economies, cascaded concerns on slowdown in global growth.
Among other precious metals, palladium was down 0,4 percent at 1,536.22 per ounce. Silver was flat at $15.44 per ounce, after touching its highest since March 1 earlier in the session.