Gold falls off $1,300/oz perch on stronger dollar, stocks

Gold prices dip on dollar recovery over Brexit relief

International Business: Gold prices dip on dollar recovery, Brexit relief

The most active gold contract for April delivery rose 7.00 US dollars, or 0.54 percent, to settle at 1,298.10 dollars per ounce.

Gold edged higher on Tuesday, supported by a retreat in the dollar after an apparent breakthrough in Brexit negotiations between the European Union and Britain, although rallying equities capped bullion's gains. "This, coupled with the Brexit news, is helping gold", said Bob Haberkorn, senior market strategist at RJO Futures. Domestic producer prices in the United States rose 1.9 percent on a year-over-year basis in February, the smallest annual increase since June 2017.

The dollar index dropped about 0.3 percent in the previous session on the tame USA inflation data, making bullion cheaper for investors holding other currencies. The US central bank's rate-setting committee will issue its next policy statement following its March 19-20 meeting.

Chinese industrial output and retail sales data are scheduled for release this week.

The updated Brexit deal also boosted Asian shares ahead of a vote in the British parliament on the divorce agreement.

In the global market, gold scaled to its near two-week high on Wednesday, reclaiming the $1,300 level in a previous session, after British lawmakers rejected Prime Minister's Teresa May's amended Brexit deal.

The result plunged the country into fresh instability just 17 days before the planned exit day of March 29.

"The possibility of a no-deal Brexit being passed had increased the likelihood of widespread buying in gold, and now that it has been rejected, I think some of that safe haven buying in gold is likely to fade", said Suki Cooper, precious metals analyst at Standard Chartered Bank.

US gold futures also dipped 0.8 percent, to $1,298.30 an ounce. On the technical front, "gold is now heading towards the next potential resistance around $1313, a former support level", said analyst Fawad Razaqzada.

As for other precious metals, silver for May delivery was up 13.9 cents, or 0.91 percent, to close at 15.413 dollars per ounce. The pound soared after the vote and was last trading up 0.14 percent to $1.3091.

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