Prices of the safe-haven gold prices edged up on Friday in Asia even after tensions and uncertainty over Brexit seemed to have eased.
On Thursday, British lawmakers voted to seek a delay to the country’s exit from the European Union.
The news came after British Prime Minister Theresa May’s Brexit deal suffered a second defeat in the parliament earlier this week. A day later, U.K. lawmakers rejected leaving the European Union without a deal.
Global equities traded mostly higher following the latest news. Gold prices, which in general move in opposite direction as the stocks due to their safe-haven nature, dropped below the key $1,300 level overnight but managed to claw back some of the losses today.
Gold Futures for April delivery were up 0.3%, at $1,298.45 per ounce on the Comex division of the New York Mercantile Exchange by 1:30 AM ET (05:30 GMT). The precious metal had hit a two-week peak of $1,310.35 on Thursday, before giving up some of its gains overnight and
“Our near term target is $1,318, as we see some resistance there, but if we can break through that, then $1,327 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.”
In other news, Sino-U.S. trade talks returned to focus today after U.S. President Donald Trump signalled optimism by saying “we are doing very well with China talks” and that “we are getting what we have to get.”
He also said “one way or the other, we are going to know over the next three or four weeks.”