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Gold Prices Inch Higher Amid U.K., U.S. Political Uncertainty

Published 16/01/2019, 13:40
© Reuters.
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Investing.com - Gold prices ticked higher on Wednesday, trading just below a seven-month high as sentiment in financial markets remained fragile on heightened worries over political instability in the U.K. and the U.S.

Comex gold futures were up $1.85, or around 0.1%, to $1,290.25 a troy ounce by 8:40AM ET (13:40 GMT). The precious metal hit a high of $1,300.40 on Jan. 4, the most since June.

Meanwhile, spot gold was trading at $1,290.45 per ounce, up $1.05, or almost 0.1%.

British Prime Minister Theresa May's government faces a no confidence vote after the crushing defeat of her Brexit divorce deal by parliament left Britain's exit from the European Union in disarray just 10 weeks before it is due to leave.

After parliament voted 432-202 against her deal, the worst defeat in modern British history, opposition Labour Party leader Jeremy Corbyn promptly called a vote of no confidence in May's government, to be held at 2:00PM ET (19:00 GMT).

In other political news, the partial U.S. government shutdown has extended into its 26th day, making it the longest on record, as a standoff between President Donald Trump and Democrats in Congress over the president's border wall money shows no signs of being resolved any time soon.

Gold is often considered a haven against political turmoil.

Elsewhere in metals trading, silver futures lost 4.2 cents, or about 0.3%, at $15.57 a troy ounce.

Platinum was up roughly 0.3% at $802.15, while palladium rose 1.2% to $1,292.40.

Elsewhere, March copper climbed 1.3% to $2.670 a pound.

-- Reuters contributed to this report

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