LONDON: Gold rose on Wednesday as risk sentiment took a hit after UK lawmakers pushed the pause button on Brexit, while expectations of further monetary easing by global central banks lent further support.

Spot gold was up 0.5 per cent at $1,494.34 per ounce as of 10:48 am EDT (1448 GMT). US gold futures rose 0.7pc to $1,497.50 per ounce.

“We have seen (gold) prices closely trading along with global risk appetite and we’re seeing a little bit of weakness in the equity market, which has let some safe-haven flow back towards gold,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.

British Prime Minister Boris Johnson said on Tuesday it was up to the EU to decide whether it wanted to delay Brexit and for how long, after a defeat in parliament made ratification of his deal by an Oct. 31 deadline almost impossible.

“The uncertainties around Brexit and the concerns around the impact it could have on global growth are still keeping investors focused on gold.”

World stock markets struggled as hopes faded that an exit deal would be wrapped by next week and on concerns over a possible slowdown in the global technology sector.

On the other hand, Chinese Vice Foreign Minister Le Yucheng said on Tuesday Beijing and Washington had achieved some progress in trade talks.

Meanwhile, investors awaited the US Federal Reserve’s month-end meeting, with Federal Fund futures implying that traders see a 91pc chance for a 25 basis-point rate cut by the central bank.

The protracted trade conflict between both the countries has rattled financial markets and stirred global recessionary fears.

“Demand is going to be supported as Fed is going to deliver more rate cuts and the European Central Bank is going to remain accommodative,” said Edward Moya, a senior market analyst at OANDA.

While increasing stimulus from larger central banks will be bullish for gold in the longer term, the metal has recently struggled because of mixed signals from Fed speakers, Moya added.

Elsewhere, silver was up 0.4pc at $17.58 an ounce. Platinum rose 2.4pc to $912.07, while palladium was up 0.1pc at $1,757.60 per ounce.

Published in Dawn, October 24th, 2019