Gold steadied in a tight range on Tuesday as investors adopted a cautious approach ahead of a crucial Brexit vote, while focus shifted to the U.S. Federal Reserve’s stance on interest rate cuts.
Spot gold was steady at $1,484.60 per ounce. U.S. gold futures settled mostly unchanged at $1,487.5.
“Everything is really quiet. The biggest factor, with the Fed looming and Brexit on the horizon, in the U.S. is really company earnings right now,” said Michael Matousek, head trader at U.S. Global Investors.
“People who are trading gold consistently are saying Brexit is going to be a non-event and that’s why gold is not moving. (However,) if this is an incorrect assumption, and it becomes a big event, you are going to see a massive move in gold.”
British Prime Minister Boris Johnson faces two pivotal votes in parliament that will decide whether he can deliver on his pledge to lead Britain out of the EU in nine days’ time.
Source : Reuters