Gold Trades Steady Under $1,500 in Wait for EU’s Decision on Brexit Extension - Forex News by FX Leaders
Gold - XAU/USD

Gold Trades Steady Under $1,500 in Wait for EU’s Decision on Brexit Extension

Posted Thursday, October 24, 2019 by
Arslan Butt • 1 min read

On Thursday, gold continues to trade somewhat steady under the $1,500 level, supported by ongoing uncertainties surrounding Brexit and increased expectations for monetary policy easing by leading central banks in the near future. At the time of writing, GOLD is trading at a little above $1,492.

Gold traders seem to be waiting on the sidelines until they hear from the EU on whether or not Britain will get another extension on the Brexit deadline. While it’s almost certain the EU27 leaders will have to agree to grant an extension, it remains to be seen if Britain will get the three-month extension it has requested or if the EU will give it a tighter deadline to work things out.

Gold prices have been trading under the $1,500 level ever since the US and China concluded their high level trade talks and confirmed their interest in working out a phase one trade deal in the coming weeks. Trade tensions appear to have abated, improving the market sentiment considerably, sending safe haven assets lower.

However, gold prices are supported in anticipation of the upcoming Fed meeting scheduled for next week. Markets are waiting to hear if the Fed will cut interest rates once again on the back of weak economic data emerging from the US economy of late.

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About the author

Arslan Butt // Index & Commodity Analyst
Arslan Butt is our Lead Commodities and Indices Analyst. Arslan is a professional market analyst and day trader. He holds an MBA in Behavioral Finance and is working towards his Ph.D. Before joining FX Leaders Arslan served as a senior analyst in a major brokerage firm. Arslan is also an experienced instructor and public speaker.
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