October 23, 2019 / 3:09 PM / a month ago

PRECIOUS-Gold gains on Brexit jitters, market eyes Fed meeting

* Traders see 91% chance for 25-bps rate cut by Fed -FEDWATCH

* GRAPHIC-2019 asset returns: tmsnrt.rs/2jvdmXl (Updates prices)

By K. Sathya Narayanan

Oct 23 (Reuters) - Gold gained on Wednesday as some investors sought refuge in the metal after UK lawmakers pushed the pause button on Brexit, while expectations of further monetary easing by central banks lent further support.

Spot gold was up 0.2% at $1,491 per ounce at 1:50 p.m. EDT (1750 GMT). U.S. gold futures settled about 0.6% higher at $1,495.70 per ounce.

“The uncertainties around Brexit and the concerns around the impact it could have on global growth are still keeping investors focused on gold,” said Suki Cooper, precious metals analyst at Standard Chartered Bank.

EU leaders on Wednesday considered whether to give Britain a three-month Brexit extension, and Prime Minister Boris Johnson said that if they do so he would call an election by Christmas.

However, there are still plenty of hurdles left, and Johnson’s ability to deliver on a “do or die” pledge to get Britain out of the EU by Oct. 31 is in doubt, after parliament rejected a three-day timetable to enact his agreement.

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

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

Investors await the U.S. Federal Reserve’s month-end meeting, where it is expected to reduce its benchmark interest rate for the third consecutive time this year.

Federal Fund futures implied that traders see a 91% chance for a 25 basis-point rate cut by the central bank.

“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 0.1% at $17.54 an ounce.

Platinum rose 2.5% to $913.41, after scaling a more-than three-week high earlier, while deficit-hit palladium was down 0.8% at $1,742.01 per ounce. (Reporting by K. Sathya Narayanan in Bengaluru; Editing by Steve Orlofsky and Tom Brown)

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