Investors Relieved As Gold Holds Firm Inspite Of Brexit Vote

Gold held steady today inspite of the uncertainty around Brexit. Lawmakers voted down British Prime Minister Theresa May’s deal to leave the European Union.

Spot gold was steady at $1,289.70 per ounce at 0442 GMT.U.S. gold went up by 0.1 percent at $1,289.40 per ounce.

American Fed policymakers agreed that the central bank should pause further rate hikes until it is clear how much the economy will be held back by larger risks like slowing growth in China.

Gold tends to gain on expectations of lower interest rates as they reduce the opportunity cost of holding non-yielding bullion. Lower interest rates also tend to weigh on U.S. yields and the dollar in which gold is priced.

Spot gold  gained more than 11 percent since hitting a 1-1/2-year low in mid-August at $1,159.96, mostly due to tumultuous stock markets and a weakness in the U.S. dollar.Spot gold remains neutral in a range of $1,285-$1,299 per ounce while silver is steady at $15.57 an ounce.

 

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