Gold SOARS to SEVEN-MONTH HIGH: Investors turn to precious metal ahead of Brexit vote

Tuesday, January 29, 2019
By Paul Martin

GOLD prices soared to a seven-month high today as investors turn to the safe-haven precious metal ahead of three major events which could shake global markets.

Tue, Jan 29, 2019

This week will see a crucial Brexit vote on Tuesday evening, the United States Federal Reserve decision on Wednesday and the conclusion of US-China trade talks on Thursday. Gold broke through $1,300 an ounce to reach its highest since mid June earlier today. As of 12PM UK time, the price of spot gold was up 0.34 percent to $1,308.45 an ounce. Margaret Yang, a market analyst at CMC Markets, said: “Investors are very cautious with many uncertainties on US-China trade talks and Brexit.

“All these are making it more difficult for investors to judge the market’s direction.

“Money is fleeing into assets such as gold, seeking safety.”

Trade tensions between the US and China escalated overnight after American officials issued criminal charges against Huawei.

The US has filed 23 charges against the Chinese telecommunication giant.

Wanzhou Meng, Huawei’s Chief Financial Officer, has also been charged in relation to the violation of sanctions against Iran.

Ms Meng was arrested in Canada last month and is facing extradition to the US.

Huawei said on Tuesday it was “disappointed” with the US charges and denied all the allegations, including the ones regarding Ms Meng.

The Huawei announcement came before trade talks with Beijing later this week and snuffed out a fledgling relief rally in global risk assets led by Chinese stocks and the euro currency.

The losses came after Caterpillar and Nvidia Corp joined a growing list of companies cautioning about the crippling effects of softening Chinese demand.

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