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Gold Prices Rise amid Trade, Brexit Risk

Published 11/16/2018, 04:56 AM
Updated 11/16/2018, 05:04 AM
© Reuters.

Investing.com - Gold prices were higher on Friday as investors moved to risk-averse assets amid Brexit turmoil and trade war concerns.

Comex gold futures for December delivery increased 1.43% to $1,216.30 a troy ounce as of 5:04 AM ET (10:04 GMT).

Uncertainty over Prime Minister Theresa May’s proposed Brexit deal lingered after Brexit minister Dominic Raab resigned on Thursday.

Raab said he could not support the prime minister’s support terms of the the draft.

Meanwhile traders are also keeping an eye on trade war developments between the U.S. and China. A White House official told Reuters on Thursday that China’s written response to U.S. demands for trade reform are unlikely to lead to a deal in talks between U.S. President Donald Trump and Chinese President Xi Jinping at the G20 summit later this month.

Still, tariffs on $200 billion of Chinese goods is set to increase to 25% from 10% on Jan. 1.

A flat dollar also helped lift sentiment for the precious metal.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched up 0.03% to 96.82.

The precious metal usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

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