March 14, 2019 / 3:23 PM / 6 days ago

PRECIOUS-Gold falls 1 pct as 'no-deal' Brexit fears fade, dollar rises

 (Updates prices)
    * Jump in European equities dent bullion's appeal
    * Silver falls for first time in five sessions

    By Arijit Bose and Karthika Suresh Namboothiri
    March 14 (Reuters) - Gold fell more than 1 percent on
Thursday, slipping below  $1,300 for a second time this month,
as fears of a "no-deal" Brexit faded and the dollar gained
versus the pound ahead of a vote to extend the deadline for
Britain's exit from the European Union.
    Spot gold        was down 1 percent at $1,296.51 per ounce
as of 2:29 p.m. EDT (1829 GMT), retreating from $1,311.07
reached on Wednesday, its highest since March 1.
    U.S. gold futures        settled 1.1 percent lower to
$1,295.1 an ounce.
    "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.
    The dollar index        drew strength from a subdued pound
ahead of a parliamentary vote, expected to call for a short
delay to Brexit, later in the day.       
    Also impeding demand for gold, global equities rode a surge
in European stocks as risks of a British no-deal divorce from
the EU faded.            
    "Gold and silver are also experiencing a corrective pullback
after prices hit two-week highs on Wednesday," Jim Wyckoff,
senior analyst at Kitco Metals said in a note.
    U.S.-China trade talks are also keeping investors on their
toes. U.S. President Donald Trump cited progress in the talks, 
following reports saying leaders of the two countries have
postponed their next meeting to at least April.             
    Trump had earlier emphasized he was in "no rush" to secure a
deal with China.
    The dollar has been the preferred refuge for investors
concerned by the heightened trade tensions since last year, in
turn denting appeal for gold.
    However, analysts said demand for the metal may soon
increase on expectations that the U.S. Federal Reserve would
refrain from raising interest rates after their policy meeting
next week.
    "We expect the Fed to remain on hold, and other major
central banks to hike less and/or later. Moreover, we expect the
10-year U.S. Treasury yield and 10-year real yields to decline
slightly. This should support gold prices," analysts at ABN Amro
said in a note.
    Silver        slipped for the first time in five sessions
and was down nearly 2 percent at $15.18 per ounce.
    Palladium        inched 0.1 percent higher to $1,557.51 per
ounce, while platinum        dipped 1.6 percent to $823.77.

 (Reporting by Arijit Bose and Karthika Namboothiri in Bengaluru
Editing by Susan Thomas and Richard Chang)
  
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