Gold prices $ 1,500 again in fear of Brexit

The chances of the US rate hike when the Federal Open Market Committee meeting appeared to rise earlier as producer prices fell the most in eight months, leaving factory gates annual inflation rate at 1.4%, the lowest since 2016.

Gold prices rose above $ 1,500 again on Tuesday as talks to avoid a messy Brexit came at near-risk of collapse, as sharper US data bolstered the possibility of another interest rate cut in the end of the month from the Federal Reserve.

As of 10:30 AM ET, the futures for gold on the Comex exchange were at $ 1,510.75 an ounce of land, up 0.4% from late Monday, though still moderately among the interval they have occupied since the beginning of September

By contrast, European investors, who had bought earlier against a backdrop of Brexit concerns and negative ECB interest rates, added just 7.7 tonnes.

North American investors have been a late addition, but important to the gold rally this year, adding 62.1 tonnes to their metal holdings through funds traded in September.

Gold-backed global ETFs and related products gained $ 3.9 billion in net inflows across all regions last month, increasing their collective holdings by 75.2 tonnes to 2,808 tonnes, the highest ever. Overall, global gold-backed ETF holdings have risen 13.4% to date, according to the WGC.

US Prime Minister Boris Johnson failed to convince German Chancellor Angela Merkel in an early call that his proposals for avoiding border controls in Ireland could be turned into the EU’s desire for control over its customs union and EU market. only.

The previous high dates to the end of 2012, at which time the price of gold was about $ 1,700 per ounce, 18% higher than currently.

According to the WGC, Europe now accounts for 44% of all ETF holdings and it was Europe again that initially drove gold higher on Tuesday after US government sources informed local media that a no-deal Brexit had become more likely.

Elsewhere in housing estates, silver futures rose 1.4% to $ 17.78 an ounce, their highest in nearly two weeks, while platinum futures rose 0.5% to $ 892.30 an ounce.

Copper futures, which generally move in the opposite direction for shelters, fell 0.3% to $ 2.57 per pound./Investing.com

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