New York, US (BBN) – Gold dipped in Asia on Wednesday with markets awaiting the UK’s formal move to start a split from the European Union later in the day, an historic moment that will see British Prime Minister Theresa May outline the end game on areas from trade to defense cooperation.
Gold for April delivery on the Comex division of the New York Mercantile Exchange dipped 0.49 per cent to $1,249.50 a troy ounce, reports
Silver futures fell added 0.77 per cent to $18.248, a troy ounce while copper was last quoted at $2.670 a pound.
Overnight, gold prices traded flat on Tuesday, but remained close to one-month highs, despite upbeat economic data and rate hike chatter from Federal Reserve officials.
Gold prices shrugged off a bounce in the dollar, as jitters concerning Trump’s ability to push through his pro-growth economic agenda provided investors with a reason to seek refuge in the yellow metal, which is considered a safe haven asset.
Meanwhile, comments from Federal Reserve officials concerning interest rate hikes continued to surface as both Chicago Fed President Charles Evans and Dallas Federal Reserve Bank President Robert Kaplan on Monday, suggested that the US central bank would continue on its monetary tightening cycle.
Gold is sensitive to moves in US interest rates, which lift the opportunity cost of holding non-yielding assets such as gold, while boosting the dollar in which it is priced.