Metals Stocks

Oct. 22, 2019, 2:14 p.m. EDT

Gold ends a bit lower, but finds few cues as traders watch Brexit, U.S.-China trade talks

Silver prices pull back after Monday’s rise

By Myra P. Saefong and William Watts, MarketWatch


AFP/Getty Images

Gold prices ended a bit lower Tuesday, finding few decisive catalyst as investors kept an eye on developments surrounding Brexit and U.S.-China trade talks.

“Gold and silver appear to be on a fulcrum, as some renewed optimism on trade is offering pressure, but the upcoming Brexit vote(s) in Parliament is adding a level support,” analysts at Zaner Metals wrote in a daily report.

President Donald Trump said China has indicated that negotiations over an initial trade deal are advancing, “raising expectations the nations’ leaders could sign an agreement at a meeting next month in Chile,” they said.

Gold for December delivery on Comex fell by 60 cents, or 0.04%, to settle at $1,487.50 an ounce, while December silver  lost 10.2 cents, or 0.6%, at $17.50 an ounce.

Over in Europe, British Prime Minister Boris Johnson aimed to bring his Brexit deal, dictating the terms of the U.K.’s exit from the European Union, back to parliament for a vote this week after lawmakers on Saturday forced him to ask Brussels for another delay to the withdrawal.

“It would appear that gold could fall off sharply if the votes succeed and rally if the votes fail, especially since the deadline for the exit is only nine days away,” analysts at the Zaner Metals said.

Read: Lawmakers to challenge Johnson push to heave Brexit bill over line

A firmer tone for U.S. equities had helped to rob gold of its haven appeal on Monday, noted Carsten Fritsch, analyst at Commerzbank, in a note. Benchmark U.S. stock indexes traded mostly higher on Tuesday as gold futures settled.

Gold’s decline on Monday, however, was met by buying by exchange-traded fund investors, Fritsch noted, with Bloomberg showing inflows of 2.6 tons.

Inflows since the beginning of the month have totaled 33 tons, he said, with outflows on just two days of trading.

In other metals trade, January platinum  added $3.80, or 0.4%, to $896 an ounce, while December palladium  rose $3.20, or 0.2%, to $1,728.50 an ounce.

December copper  fell by about 1.4 cents, or 0.5%, to $2.633 a pound.

Among ETFs, gold-backed SPDR Gold Shares (PSE:GLD)  edged up by nearly 0.1%.

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