Brexit Crisis Pushes Gold Prices Up
Gold prices rose on Friday, having hit a one-week high earlier in the session. It happened because investors sought safe-haven assets amid fears of a chaotic departure for Britain from the EU. U.K. Prime Minister Theresa May's draft Brexit plan ran into news disputes after the resignation of key ministers from her government. After that eurosceptic lawmakers stepped up efforts to oust her. That provoked fears the country could leave the EU without a divorce deal.
Spot gold was up 0.2% at $1,215.07 per ounce on Friday morning. Earlier in the session, the bullion hit $1,216.79, its highest since Nov. 9. U.S. gold futures were flat at $1,215.3 per ounce. Among other precious metals, palladium edged 0.3% lower to $1,153.50 per ounce. Silver was little changed remaining at $14.29 per ounce. This week the metal rose about 1%. Platinum climbed 0.1% to $842.30 an ounce.
Meanwhile, commodity traders are also following the trade war developments between the U.S. and China. A White House official said 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. The dialogue was supposed to take place 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.