Gold Edges Up as Traders Assess Brexit Trade Deal, U.S. Relief
A selection of gold bars of various weights . (Photographer: Chris Ratcliffe/Bloomberg)

Gold Edges Up as Traders Assess Brexit Trade Deal, U.S. Relief

Gold steadied and most base metals were higher in holiday-thinned trading, with investors assessing the latest developments of a virus-relief spending package in the U.S. and the final announcement of a post-Brexit trade deal.

U.K. and European Union negotiators have finalized their historic post-Brexit trade agreement, averting the threat of an acrimonious breakup. Republicans on Thursday objected to House Majority Leader Steny Hoyer’s attempt to replace the $600 payments in the latest pandemic relief legislation with the $2,000 payments Trump said he wants. Democrats will try again Dec. 28, with a similar new bill that will be put to a full vote on the House floor.

“Gold prices are benefiting from a Brexit trade deal breakthrough that paved the way for a weaker dollar,” said Edward Moya, a senior market analyst at Oanda Corp. The metal could see further gains if the U.S. virus-aid impasse is resolved, he said.

Gold Edges Up as Traders Assess Brexit Trade Deal, U.S. Relief

Investors are looking past Trump’s demand for changes to U.S. pandemic relief, expecting that stimulus spending will come sooner or later. A gauge of the dollar retreated 0.1% after a 0.4% decline on Wednesday.

Spot gold edged up 0.3% at $1,874.02 an ounce at 12:54 p.m. in New York. Prices are up nearly 24% this year, on course for the biggest annual gain in a decade. Futures for February delivery on the Comex rose 0.3% to settle at $1,883.20. Aluminum led gains among most base metals on the London Metal Exchange, rising 1.2% to settle at $2,030 a ton, while copper fell 0.7%.

The LME’s index of base metals reached a seven-year high last week, driven by prospects of a new long-term bull market for commodities as economies recover from the coronavirus crisis.

©2020 Bloomberg L.P.

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