Gold Posts Best Weekly Gain in Five on Brexit

Investing.com – Theresa May could be fighting for her political survival, but the Brexit crisis she’s in has thrown bulls a lifeline.

Initially resigned to losing the market’s $1,200 support level as the week began, fans of the yellow metal not only got to stay in their comfort zone but also saw their best weekly gain in five as hedgers rushed to the relative safely of bullion after the pounding taken by sterling from Britan’s EU-exit woes.

COMEX futures for December delivery settled up $8, or 0.7%, at $1,223 per troy ounce after running up to $1,225.90 earlier. For the week, it rose 1.4%.

Bullion bears have hoped to send gold sharply below $1,200, a support in place since September, to exploit further weakness in the $1,100 levels.

“Gold continues steady rally from Brexit worries,” said George Gero, precious metals analyst at RBC Wealth Management in New York.

After her unpopular Brexit draft unveiled earlier in the week, UK Prime Minister May was battling to halt a growing revolt from the Tory right as half a dozen more backbenchers came out in favor of a no-confidence vote against her, with signs more MPs would join next week.

The U.K. political drama aside, gold was also propped up by flagging hopes for a US-China trade settlement after a senior Trump administration official was quoted telling Reuters that Beijing’s written response to U.S. demands, received earlier this week, was unlikely to result in a deal.

The , a contrarian trade to gold, also contributed to the yellow metal’s advance, sliding 0.5%.

Among other precious metals on COMEX, rose 3.1% to $14.38 per ounce.

surged 1.9 % to $1,158.90 per ounce, while sister metal rose 0.3% to $847.70.

In base metals, COMEX rose 1.7% to $2.80 per pound.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.