Bengaluru — Gold rose on Tuesday as the dollar weakened after the European Commission agreed to amendments to the UK’s Brexit deal, although gains were limited as the agreement also buoyed sentiment for riskier assets.
The dollar was down about 0.2% against its major peers, making gold an attractive investment for non-US currency holders, while the sterling rose sharply after the Brexit deal changes. “There was a bit of move out of the dollar that lifted gold slightly,” said Kyle Rodda, a market analyst with IG Markets in Melbourne, adding there is also increased risk appetite in the market which is capping gold’s gains.
“What would be very interesting to watch in the coming days is how the Brexit talks play out,” said Rodda, adding that a lower chance of the UK crashing out of the EU with no deal will prop up the pound and push down the dollar, supporting bullion.