Gold Makes New 1,300 High Before Backing Down as Brexit Cools

14 Mar 2019

Gold Makes New 1,300 High Before Backing Down as Brexit Cools

The pause in the Brexit drama has given occasion for cooler heads in the U.K.'s epic crisis -- and for cooler prices in gold as well.

U.S. gold futures as well as the globally-traded bullion retreated on Thursday after peaking above $1,300 an ounce for a third straight day after British lawmakers rejected leaving the European Union without a deal.

With the easing of immediate uncertainty and tensions over Brexit, gold futures for April delivery settled down $14.20, or 1%, at $1,295.10 per ounce on the Comex division of the New York Mercantile Exchange. The metal had hit a two-week peak of $1,310.35 earlier in the session.

Spot gold, reflective of trades in physical bullion, fell $12.09, or about 1%, to $1,296.96 by 3:02 PM ET (19:02 GMT), after a two-week high at $1,310.43.

Gold's slide also came as investors turned their attention to the dollar in the inverse correlation between the two. The Dollar Index, which measures the greenback against a basket of six currencies, gained 0.3% to 96.77, rising for the first time in five sessions.

But some were convinced that Thursday's retreat was a mere breather for gold and there was more immediate upside to the yellow metal.

"Our near term target is $1,318, as we see some resistance there, but if we can break through that, then 1327 would be the next level," said Matthew Tuttle who oversees some $600 million in assets for Riverside, Conn.-based Tuttle Tactical Management. "We think $1,400 is possible, but a lot of things will have to happen for gold to get there."

Gold's high so far this year is just below $1,350, achieved on Feb. 20.

Palladium prices rose for a third-straight day, reaffirming its standing as the world's costliest metal.

The spot price of palladium rose by $3.60, or 0.2%, to 1,554.70 per ounce by 3:02 PM ET (19:02 GMT).

Trades in other Comex metals as of 3:02 PM ET (19:02 GMT):

Palladium futuresup $8.25, or 0.6%, at $1,514.95 per ounce.

Platinum futures down $16.05, or 1.9%, at $825.65 per ounce.

Silver futuresdown 3 cents, or 1.8%, at $15.17 per ounce.

Copper futures down 4.5 cents, or 1.5%, at $2.89 per pound.

Facebook Comments

You can comment on Gold Makes New 1,300 High Before Backing Down as Brexit Cools using Facebook here

Disqus Comments

Join the discussion on Gold Makes New 1,300 High Before Backing Down as Brexit Cools using Disqus