Gold Back Above $1,500 Over Brexit, Economic Uncertainties
Early on Friday, gold prices are holding steady after climbing above the key $1,500 level on Brexit uncertainties. At the time of writing, GOLD is trading at a little above $1,502.
Gold surged higher after the EU postponed its decision on the Brexit extension for a day during the previous trading session. According to a Reuters report, EU27 countries have agreed to grant Britain an extension but EU’s decision could be put on hold after PM Boris Johnson threatened to pull his deal if the Opposition doesn’t accept his call for general elections.
The recent political in the turmoil could see the EU delay its announcement on the Brexit extension to sometime early next week. Gold has crossed the $1,500 level as no clear move emerges on how and when Brexit could actually happen.
Gold is also trading bullish, supported by weak economic data releases from around the world and raised expectations for a possible rate cut by the Fed in its upcoming meeting next month. Expectations are also high that the BOJ could go down the same path and possibly roll out additional stimulus measures to support the weakening Japanese economy.
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