BENGALURU – Gold scaled a near one-week peak on Thursday as investors sought cover from market turmoil after Britain's long-awaited draft agreement to leave the EU was thrown into chaos, helping the metal hold its ground against a rising dollar.
British Prime Minister Theresa May battled to save a draft divorce deal with the EU after her Brexit secretary and other ministers quit in protest and eurosceptic legislators stepped up efforts to topple her.
Spot gold was up 0.4 percent to $1 215.33 (R17 286) an ounce at 5pm on Thursday, after touching it highest since November 9 at $1 216.27 earlier in the session and moving away from a one-month low of $1 195.90 hit on Tuesday. US gold futures rose 0.5 percent to $1 215.90 an ounce.
“Uncertainty around Brexit is the biggest factor right now. It’s becoming top of the news again,” said Michael Matousek, head trader at US Global Investors. “People are running to the safety of the hard assets such as commodities including gold and crude, and also the dollar … If gold can hold above the $1 209 level, we could see it rise to $1 235.”
Dublin-based gold dealer GoldCore said there were signs the trade war could be easing, with US President Donald Trump expected to meet Chinese President Xi Jinping at a G20 summit in Argentina this month.
On the technical front, while gold could test resistance at $1 235 and $1 250 before year-end, it is vulnerable to short-term weakness, he said.
Silver was up 0.4 percent at $14.19 an ounce. It fell to $13.85 in the previous session, a level last seen on January 21, 2016. Platinum was up 0.1 percent at $835 an ounce, while palladium jumped 1 percent to $1 135.49 an ounce.