Gold basks in the glow of Theresa May’s humiliating defeat
The metal is stable, supported by uncertainty around Brexit and the hope for a pause in the Fed’s hiking cycle
Bengaluru — Gold held steady on Wednesday, supported by uncertainty around Brexit, after MPs voted down British Prime Minister Theresa May’s deal to leave the EU, and the hope for a rate hike pause by the US Federal Reserve. Spot gold was steady at $1,289.31/oz at 2.51am GMT. US gold futures were also firm at $1,288.80/oz. “The safe-haven appeal is quite strong as there are rising possibilities of a disorderly Brexit,” said Benjamin Lu, analyst with Phillip Futures, adding that the metal was holding pretty well despite competing influence from US equity markets British legislators defeated May’s Brexit divorce deal by a crushing margin, triggering political chaos that could lead to a disorderly exit from the EU or even to a reversal of the 2016 decision to leave. “We are seeing weakness in economy in China as well as the US and markets are expecting that Fed might slow interest rates in the near future,” Lu said.
In separate appearances on Tuesday, Fed policymakers from across...
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