Price History: Gold drops while dollar recovers on Brexit release
On Thursday gold prices drop as the dollar recovers its ground of uncertainty regarding the Brexit as it eases. However, metal comes closer into its two-weeks high hits during the previous session. It was as tepid United States inflation data flattening out expectations on the Federal Reserve could hold rates.
Moreover, the spot gold went down at about 0.4 percent and now amounting to $1,303.83 an ounce during 0416 GMT. That was upon touching its highest since the first day of March amounting to $1,311.07 as of March 13. Additionally, the United States futures dipped at about 0.4 percent now amounting to $1,304 an ounce.
Analyst on gold prices
Meanwhile, Margaret Yang, market analyst with CMC Markets, Singapore says, “The dollar is playing a main role in driving gold prices down during Asia trading hours. The dollar has been falling for the last four sessions, and we are seeing a small rebound today.”
According to Yang the safe-haven demands on metal working as a hedge against Brexit uncertainty decreases upon British lawmakers refuses on leaving the European Union without a certain deal.
Elsewhere, the lawmakers expect to vote, later on, Thursday. That to delay Britain’s departure coming from the EU. Currently, the voting scheduled for 29th of March.
Furthermore, Daniel Hynes, ANZ analysts said, “The markets are assessing the landscape in Europe and UK after the vote. If we do see the deadline pushed out, there wouldn’t be a huge impact (in gold prices), but the reaction will be great if we see some sort of deal agreed to in the UK parliament.”
Subsequently, the dollar comes higher against major currencies. That was upon failure mostly in two weeks during the previous session on the soft United States economic data.
Last month, the United States prices barely rose. That result in its smallest annual incline in about over one and a half years. That reinforces a lot of views regarding the Federal Reserve could be patient on the future rate hikes.
Furthermore, the gold prices gain about 2 percent as of this year with expectations on the patient approach shown by the Fed on to raising interest rates, and at the same time escalating worries above the global economic slowdown.
Earlier today, a data was released indicating that China industrial output grows at about 5.3 percent during the first two months of the year. That of which is its slowest pace expansion within 17 years.
The market participants currently focus on the Bank of Japan’s (BoJ) ,pmetary policy talk on March 14 and 15. Yang said, “At the moment global central banks are leaning towards the dovish side and if BOJ is strongly dovish that could lead the yen to fall against the dollar and gold prices could go down,”
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