UK Markets open in 7 hrs 25 mins
  • NIKKEI 225

    29,639.40
    -200.31 (-0.67%)
     
  • HANG SENG

    24,221.54
    +122.40 (+0.51%)
     
  • GOLD FUTURES

    1,768.40
    -9.80 (-0.55%)
     
  • DOW

    34,258.32
    +338.48 (+1.00%)
     
  • BTC-GBP

    31,485.98
    +24.88 (+0.08%)
     
  • CMC Crypto 200

    1,089.55
    +49.07 (+4.72%)
     
  • Nasdaq

    14,896.85
    +150.45 (+1.02%)
     
  • ^FTAS

    4,081.81
    +52.80 (+1.31%)
     

Gold inches up on Brexit jitters, risk-on mood limits gains

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
A saleswoman displays a gold necklace inside a jewellery showroom on the occasion of Akshaya Tritiya, a major gold buying festival, in Kolkata
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

By Eileen Soreng

(Reuters) - Gold prices edged higher on Wednesday after shedding nearly 1% in the previous session, on uncertainties surrounding Britain's negotiations to leave the European Union, while a risk-on sentiment capped the bullion's gains.

Spot gold <XAU=> was up 0.1% at $1,482.54 per ounce as of 0725 GMT. U.S. gold futures <GCv1> were 0.2% higher at $1,486.90 per ounce.

"There are some uncertainties since there is a lot to go through on Brexit. For instance even if both EU and UK negotiators agree on terms it still has to go through the parliament," AxiTrader market strategist Stephen Innes said.

However, a signed Brexit deal could push yields higher, which fundamentally are significant headwinds over the near term for gold, Innes added.

Higher yields tend to lift the dollar and pressure gold, which costs to store and insure but does not pay interest.

Brexit talks will resume in Brussels on Wednesday morning after "constructive" negotiations that went into the night on Tuesday, a British spokesman said.

Michel Barnier, EU negotiator, had made it clear at a meeting of the bloc's ministers in Luxembourg that if an agreement could not be reached on Tuesday, it would be too late to send anything for leaders to approve at the summit in Brussels on Thursday and Friday.

Gold also found some support from fresh U.S.-China strains over Hong Kong.

The U.S. House of Representatives on Tuesday passed four pieces of legislation taking a hard line on China, three related to the protests in Hong Kong.

Beijing opposed the new measures and urged lawmakers to stop interfering.

So far the trade negotiations were going well between U.S. and China, but if we see a flip over this issue we might see gold moving up, Phillip Futures analyst Benjamin Lu said.

"Gold is still relatively range bound between $1,474 and $1,510."

Meanwhile, many Asian share markets held some gains in the wake of Tuesday gains by U.S. and European equities, while the dollar was slightly under pressure against a basket of six major currencies.

Holdings in SPDR Gold Trust <GLD>, the world's largest gold-backed exchange-traded fund, fell 0.22% to 919.66 tonnes on Tuesday.

Among other precious metals, deficit-hit palladium <XPD=> rose 0.2% to $1,736.39 an ounce, hovering near its record high of $1,739.93 hit on Tuesday.

Silver <XAG=> dipped 0.5% to $17.29 per ounce and platinum <XPT=> slipped 0.7% to $882.49.

(Reporting by Eileen Soreng and Karthika Suresh Namboothiri in Bengaluru; Editing by Shounak Dasgupta and Louise Heavens)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting