Gold steadies as concerns on Brexit, trade war linger

Brexit decision dominates Sterling Euro outlook

"Trading the British pound intra-day at the moment is not for the faint-hearted, with deep pockets required", said Jeffrey Halley, senior market analyst at OANDA.

Helping to alleviate immediate trade war worries, China had said on Thursday that it hoped to reach a phased agreement in its trade dispute with the United States as soon as possible.

In early trade, London added 0.1 percent but was weighed by the stronger pound, while Paris eased 0.3 percent and Frankfurt edged 0.1 percent lower.

The EUR/USD currency pair was trading at 1.1154 as at 16:46 GMT having rallied from a low of 1.1115.

An index that tracks the dollar versus a basket of six major currencies was down 0.39 percent at 97.18.

But Juncker appeared to rule out any new postponement, leaving British lawmakers with a simple choice: deal, no deal or revoke Brexit.

One blow is that Northern Ireland's Democratic Unionist Party, with 10 potential supporters, came out firmly against the deal.

China said its economy expanded six percent in the third quarter - marking the slowest pace in 27 years - as leaders struggle to address weak domestic demand and the long-running United States trade war. On the other hand, European Union officials appear cautiously optimistic that a deal can be drafted and approved by Thursday. Conversely, political optimism may send the British Pound higher vs the US Dollar, though upside momentum may encounter friction at the 1.2978-1.3004 range.

In currencies, sterling was taking a breather at US$1.2850 (RM5.38), having scored its best six-day streak in near 30 years yesterday after Britain and the European Union sealed a new Brexit deal.

"We're going to find out this weekend whether this is going to turn into a realty or whether it's a pipe-dream", said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

London's FTSE 100 was down 0.5% to 7,213.45 points, Paris's CAC 40 lost 0.4% to 5,643.08 and Frankfurt's DAX 30 slipped 0.2% to 12,486.56 points at the close yesterday.

The euro rested at US$1.1125, not far from US$1.1140, its highest since August 26. Prices had gained about 0.2 per cent in the week.

"Economic data out of USA and China are in favor of further (monetary policy) easing that will be supportive for gold", said SP Angel analyst Sergey Raevskiy.

Northern Ireland's hardline loyalist DUP said Thursday it was "unable to support" the draft deal.

Benchmark Brent crude oil futures fell 49 cents to settle at $59.42 a barrel.

Spot gold was down 0.2% at $1,489.02 an ounce at 1143 GMT.

The US and China has finished the first phase of trade deal, but the twist is that the trade deal will not get signed before Donald Trump meets Xi in Chile at the APEC summit on November 16 and 17.

Worries surrounding a trade war between the United States and China still lingered, with China's economic growth slowing more than expected to 6 per cent year-on-year in the third quarter, the weakest pace in nearly three decades.

Companies listed on the STOXX 600 index are now expected to report a decline in third-quarter earnings of as much as 3.7%, worse than the 3% expected a week ago, according to I/B/E/S data from Refinitiv. The yield on benchmark 10-year Treasury notes edged up though to 1.764%, compared with a USA close of 1.755% on Thursday.



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