Gold Ends Modestly Higher On Safe-haven Appeal

Gold prices edged higher on Wednesday, snapping a three-day losing run, as investors sought the safe-haven asset amid continued uncertainty about Brexit and rising possibility of more monetary easing by global central banks.

Disappointing results from a few big-name companies including Caterpillar and Boeing also weighed on stock markets and prompted investors to seek the yellow metal.

The dollar was mostly up slightly in positive territory, although it found the going somewhat tough amid rising prospects for a rate cut by the Federal Reserve next month.

The dollar index, which advanced to 97.65, was last seen moving around 97.55, up 0.02% from previous close.

Gold futures for December ended up $8.20, or about 0.6%, at $1,495.70 an ounce, after rising to a high of $1,499.40 in the session.

On Tuesday, gold futures for December ended down $0.60, or 0.04%, at $1,487.50 an ounce.

Silver futures for December ended up $0.080 at $17.580 an ounce, while Copper futures for December closed higher by $0.0385 at $2.6715 per pound.

In political news from the U.K., a general election could be on the cards after lawmakers supported the prime minister’s deal to withdraw the U.K. from the EU, but then rejected a limited time frame for reviewing the legislation related to Brexit.

Prime Minister Boris Johnson has vowed to push for an election if EU leaders sanction a Brexit extension of up to three months.

In economic news from Europe, France’s manufacturing confidence weakened to the lowest level in more than four years in October, survey results from the statistical office Insee showed.

According to preliminary data from the European Commission, Eurozone consumer confidence weakened more-than-expected in October to its lowest level in 10 months, falling to -7.6 from -6.5 in September. Economists had forecast a score of -6.7. The EU consumer confidence index shed 0.9 points to reach -7.3 in October.

The material has been provided by InstaForex Company – www.instaforex.com