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Gold Prices Inch Down Despite Brexit Worries

Investing.com - Gold prices inched down on Monday in Asia as traders awaited more clarity on the Brexit development.

British lawmakers voted on the weekend to delay a decision on Prime Minister Boris Johnson’s Brexit deal, forcing him to request a third postponement of Britain’s departure from the EU.

Despite the delay, markets remained confident that a no-deal exit from the EU would be avoided.

Goldman Sachs said on Sunday that it lowered the probability of a no-deal Brexit to 5% from 10%, while analysts from RBC Capital Markets said the delay have further reduced the risk of disorderly exit.

"If there is a knee-jerk negative reaction in the pound as we emerge from the weekend with a greater overhang of uncertainty than hoped and some of the long positions are unwound, it should be faded soon,” Adam Cole, chief currency strategist at RBC, said in a note that is cited by Reuters.

Gold Futures for December delivery slipped 0.1% to $1,493.15 per ounce by 12:50 AM ET (04:50 GMT).

“If you actually trade gold you can feel the lack of emotion in the markets these days as buying interest continues to run tepid,” said Axitrader market strategist Stephen Innes. “The expectation for weaker economic data and the current level of central bank policy response seems to be all factored into the current price, suggesting gold traders need a new catalyst.”

On the Sino-U.S. trade front, China’s Vice Premier Liu He confirm that Beijing and Washington “have made substantial progress in many aspects” and that they have “laid an important foundation for a phase one agreement.”

He reiterated that China is “willing to work in concert with the U.S. to address each other’s core concerns on the basis of equality and mutual respect.”



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