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Gold moved up as U.K. Prime Minister Theresa May suffered secondBrexit defeat in just three months, raising market concerns over the quicklyapproaching March 29 Brexit deadline. UKparliament voted on Tuesday to reject Prime Minister Theresa May’s Brexit dealby 391 votes to 242 after May said she secured "legally binding"changes to her Brexit deal. Gold climbed above its key psychological level of$1,300, with April futures last trading at $1,301.40,up 0.80% on the day.

The defeat was heavy for May, who warned Parliament that: “If thisvote is not passed tonight, if this deal is not passed, then Brexit could belost.” Also, the European Commission President Jean-Claude Juncker said onMonday after talks with May that there will be "no third chance” for theU.K. if the deal is voted down again. “There will be no further interpretationsof the interpretations, no further assurances of the reassurances if the‘meaningful vote’ tomorrow fails,” Juncker said.

The key U.S. economic datapoint early this week was today’s consumer price index report for February,which came in at up 0.2% from January and was in line with market expectations.On an annual basis, CPI was up 1.5%--the lowest reading in 2.5 years. Thiscontinues a theme of low and non-problematic inflation in the major worldeconomies, which is allowing the central banks to keep interest rates low.The gold and silver markets up-ticked just a bit following the report, whichfavoured the monetary policy doves.

Asian and European stock markets weremixed today. U.S. stock indexes were firmer at midday. There is not much traderand investor anxiety in the world marketplace at present, which is bullish forworld stock markets but bearish for the safe-haven metals.


 
Posted on 13/03/2019 9:00:00 AM

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