Gold Holds Firm In Cautious Trade

Gold prices inched higher on Wednesday despite the U.S. dollar strengthening across the board on the back of encouraging data on home construction, industrial production and job openings released overnight.

Spot gold edged up 0.15 percent to $1,478.89 per ounce while U.S. gold futures were up 0.15 percent at $1,483.35.

Investors sought concrete details on the initial trade deal between Beijing and Washington after the White House made it clear that there will be tariffs remaining in effect at 25 percent on $250 billion worth of Chinese imports, as well as 7.5 percent on an additional roughly $120 billion worth of Chinese exports.

Growth worries and British Prime Minister Boris Johnson’s revamped threats of a hard Brexit also remained on investors’ radar.

Official data showed today that Japan’s exports decreased for the 12th consecutive month in November, raising the risk of a contraction in the fourth quarter.

Risks of a no-deal Brexit ramped up again in the wake of reports that U.K. Prime Minister Boris Johnson will amend the Brexit bill, explicitly ruling out any extension to the transition period beyond December 2020.

The U.K. is due to leave the European Union by January 31, leaving little time for a trade deal to be agreed with the EU.

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

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