Investing.com – The Brexit theater is taut with suspense and gold longs are keeping their powder dry, Tuesday, until clearer signs emerge on where things are going.
U.K. Prime Minister Boris Johnson decided to pause his Brexit deal legislation after parliament voted against his fast-track timetable, although it did approve a first vote that agreed to his deal in principle.
U.S. gold futures for December delivery settled down just 60 cents, at $1,487.50 per ounce. In post-settlement trade, it was back in the green, trading up $2.25, or 0.2%, at $1.490.35 by 2:44 PM ET (18:44 GMT)
Spot gold, which tracks live trades in bullion, was up $2.83, or 0.2%, at $1,487.26.
Bullion is up nearly 16% on the year, although it has come off from its six-year highs of above $1,550 in September.
“Current prices are trading below the upward trend which formed this summer and the proportion of technical signals pointing long is in decline, lead primarily by an ebbing of momentum signals,” TD Securities said in its daily note on gold.
Brexit aside, the gold market’s other preoccupation has been next week’s Federal Reserve monetary policy meeting where a third-straight rate cut for the year is being mulled. The Fed meets Oct. 29-30 and federal fund futures imply an 89% chance for a 25-basis-point cut by the U.S. central bank.
A third rate cut for the year could lift gold again beyond $1,500.