Investing.com – Sorry, gold bears: The yellow metal’s $1,200 support isn’t looking likely to break yet.
Uk Prime Minister Theresa May’s embattled career, after the unpopularity of her Brexit plan with some of her own cabinet, and a lack of clarity over a response apparently written by China to U.S. trade demands are keeping gold bulls in their comfort zone despite renewed vigor in the dollar.
May announced her draft agreement on Britain’s withdrawal from the EU on Wednesday, triggering the resignations of Dominic Raab and Esther McVey, her Brexit and Work and Pensions secretaries, and six other government officials. UK opposition leader Jeremy Corbyn has called May’s draft a “botched deal” that breaches the government’s own red lines, while the PM says she believes with “every fiber of (her) being” she was doing right for Britons.
On the U.S.-Sino trade war, three sources in Washington told Reuters that China has delivered a written response to U.S. demands for wide-ranging trade reforms — a move that could trigger negotiations or further stall a withering trade war between the world’s top economies. There’s no knowledge of what’s in that response as the deadline approaches for a possible meeting between U.S. President Donald Trump and his Chinese counterpart Xi Jinping on the sidelines of the G20 summit in Argentina.
“Gold traders are carefully eyeing open interest in COMEX gold futures, which are at their highest in four months at 539,320 lots,” George Gero, precious metals analyst at RBC Wealth Management in New York, said, attributing the heightened bids to news on Brexit and China.
COMEX futures for December delivery settled up 4.90, or 0.4%, at $1,215.10 per troy ounce after running up to $1,216.90 earlier. Unlike the past two sessions, when it strayed below the $1,200 level in intraday trade, Thursday was a solid day above that line for December gold. Bullion bears have hoped for a break of that support, in place since September, to launch a further attack on gold that could push it to the lower $1,100 levels.
The , a measure for the greenback against six other currencies and a contrarian bet to , meanwhile, was up 0.1%, again nearing this week’s 16-month highs. The dollar rose after the pound dropped by more than 1% on Brexit concerns.
Among other precious metals on COMEX, rose 2.5% to $14.30 per ounce.
surged 3.1 % to $1,144.30 per ounce, while sister metal rose 1.6% to $846.90.
In base metals, COMEX rose 3% to $2.77 per pound.
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Source: Investing.com
