Gold declines as the dollar recovers and fog from the UK exit fades

Gold prices fell on Thursday as a result of the dollar 's recovery and the uncertainty surrounding Britain' s exit from the European Union.

However, the metal remained close to the two-week high recorded in the previous session, as weak US inflation data reinforced expectations that the Federal Reserve would keep interest rates unchanged.

At around 5:55 am GMT, the spot gold price was down 0.4% to $ 1303.87 an ounce, after reaching its highest level since March 1st at 1311.07 dollars on Wednesday. .

Gold in US futures fell 0.4% to $ 1304.20 an ounce.

"The dollar has played a major role in lowering the price of gold during Asian trading hours.It has dropped in the last four sessions and we are seeing a slight recovery today," he said. said Margit Yan, market analyst at CMC Markets in Singapore.

The demand for metal, as a safe haven and protection from the blur of the British exit, fell after UK legislators refused to withdraw from the EU without an agreement.

It is now widely accepted that lawmakers will vote later in the day in favor of postponing Britain's exit from the European Union, scheduled for March 29th.

The dollar index, which tracks the greenback's performance against a basket of other major currencies, rose 0.1% after recording its biggest loss in two weeks in the previous session , on the weakness of US economic data.

Gold has gained nearly 2% since the beginning of the year, but the Fed should be patient to raise interest rates and fear a slowdown in the global economy.

On other precious metals, palladium fell by 0.9% in spot transactions, to $ 1,542.62 an ounce, while platinum fell 0.6% to $ 832.79 a barrel. ;ounce.

Money fell for the first time in five sessions, down 0.5% to 15.37 dollars an ounce.