Gold dips 1 percent as no-deal Brexit fears fade, dollar rises

Gold gains as dollar dips on tame US data Brexit vote in focus

Gold gains as dollar dips on tame US data Brexit vote in focus

British lawmakers voted by a margin of 43 to confirm their decision to reject any no deal Brexit.

Spot gold was up 0.2 percent at $1,304.26 per ounce after touching its highest since 1 March at $1,305.69 earlier in the session.

Spot gold was up 0.2% at $1,296.08 an ounce as of 4.03am GMT, while United States gold futures rose 0.4% to $1,295.90 an ounce.

For now, investors are eyeing the UK Parliament vote to trigger Article 50 with no-deal. If that fails, a further vote on Thursday will decide whether to extend the Brexit deadline.

Meanwhile, US consumer prices rose for the first time in four months in February, but the pace of the increase was modest, resulting in the smallest annual gain in almost 2-1/2 years, supporting the Federal Reserve's "patient" stance on USA interest rate hikes.

However, analysts said demand for the metal may soon increase on expectations that the U.S. Federal Reserve would refrain from raising interest rates after their policy meeting next week.

"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 United Kingdom crashing out of the European Union with no deal will prop up the pound and push down the dollar, supporting bullion.

The dollar fell from near three-month highs hit in the previous session, making bullion cheaper for holders of other currencies, while sterling soared. "We don't see a need for the Fed to be so hawkish at the moment, and that could have played a small hand in gold's rally", said Phil Streible, senior commodities strategist at RJO Futures in Chicago. "Markets are going to be more interested in safe-haven assets in light of volatility from a slowing economy", Lu of Phillip Futures said.

Spot gold rose 0.6 percent to $1,308.69 per ounce while USA gold futures were up 0.85 percent at $1,308.95 per ounce. According to analyst opinions published by Reuters, gold may test a resistance level at $1,307, and a breakout above that point could lead the precious metal to head higher to as much as $1,313 per ounce.

Among other precious metals, palladium was up 0.2 percent at 1,539.55 per ounce, while platinum gained 0.8 percent to $831.53. USA gold futures settled 0.9 percent higher at $1,309.3 per ounce. Silver was up 0.1 percent to $15.46 per ounce.