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: http://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 XAU= was up 0.2% at $1,491 per ounce at 1:50
p.m. EDT (1750 GMT). U.S. gold futures GCv1 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. FEDWATCH
"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 XAG= was up 0.1% at $17.54 an ounce.
Platinum XPT= rose 2.5% to $913.41, after scaling a
more-than three-week high earlier, while deficit-hit palladium
XPD= was down 0.8% at $1,742.01 per ounce.