Gold prices made modest moves on Tuesday, struggling to find direction as investors kept an eye on developments surrounding Brexit and U.S.-China trade talks.
“Gold and silver appear to be on a fulcrum, as some renewed optimism on trade is offering pressure, but the upcoming Brexit vote(s) in Parliament is adding a level support,” analysts at Zaner Metals wrote in a daily report.
President Donald Trump said China has indicated that negotiations over an initial trade deal are advancing, “raising expectations the nations’ leaders could sign an agreement at a meeting next month in Chile,” they said.
Over in Europe, British Prime Minister Boris Johnson aimed to bring his Brexit deal, dictating the terms of the U.K.’s exit from the European Union, back to parliament for a vote this week after lawmakers on Saturday forced him to ask Brussels for another delay to the withdrawal.
“It would appear that gold could fall off sharply if the votes succeed and rally if the votes fail, especially since the deadline for the exit is only nine days away,” analysts at the Zaner Metals said.
A firmer tone for U.S. equities had helped to rob gold of its haven appeal on Monday, noted Carsten Fritsch, analyst at Commerzbank, in a note. Benchmark U.S. stock indexes headed higher on Tuesday as well.
Gold’s decline on Monday, however, was met by buying by exchange-traded fund investors, Fritsch noted, with Bloomberg showing inflows of 2.6 tons.
Inflows since the beginning of the month have totaled 33 tons, he said, with outflows on just two days of trading.
December copper HGZ19, -0.45% was off nearly a cent, or 0.3%, at $2.6375 a pound.
Among ETFs, gold-backed SPDR Gold Shares GLD, +0.06% edged up by nearly 0.1%.