Gold Trades Bullish Even as Markets Await Brexit Development After the Failed Vote
Arslan Butt • 1 min read
Gold is trading slightly bullish early on Monday as markets await further developments on Brexit after the latest deal failed the crucial Parliament vote on Saturday. At the time of writing, GOLD is trading at a little above $1,491.
Although negotiations are on between trade teams for a partial trade deal between the US and China in a few weeks’ time, the trade war continues to pressure global economic growth, supporting gold prices in financial markets. Japan’s exports slid for the 10th consecutive month, adding more pressure to its export-reliant economy. The government has already downgraded its economic outlook for the third time this year during the previous week.
Gold traders are waiting for updates on how Brexit talks will proceed now that UK lawmakers have rejected PM Boris Johnson’s deal in the Parliament. While Johnson insists on taking Britain out of the EU on October 31 despite not having a deal in place, the EU is considering granting Britain a possible extension once again to finalize a deal before departure.
Volatility in gold is expected to be triggered as markets remain confused on Brexit developments, and their possible impact on global financial markets. The safe haven appeal of the precious metal has been under pressure in today’s Asian session on the release of economic data from China which revealed that new home prices rose higher during September despite the ongoing trade war.