Gold SOARS to SEVEN-MONTH HIGH: Investors turn to precious metal ahead of Brexit vote | City & Business | Finance

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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.

Meanwhile in the UK, the Prime Minister is set for a showdown in the Commons with MPs set to vote on a series of amendments to her EU withdrawal agreement.

The pound was trading close to opening levels against the euro and US dollar ahead of the crucial day for the future of Brexit.

At the time of writing, Sterling was worth €1.1516 and $1.3163.

This morning saw the FTSE 100 rise by one percent, while the German DAX gained 0.8 percent as the CAC 40 in Paris shot up 0.6 percent.


Overnight on Wall Street, the Dow and S&P 500 each closed down 0.8 percent and the Nasdaq was off more than one percent.

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