Gold prices fall

BENGALURU. — Gold prices fell yesterday as the dollar strengthened, but uncertainty surrounding the effect of Britain’s departure from the EU and the upcoming French elections offered some support.

Gold was witnessing a correction after failing to break above its 200-day moving average around the $1 260 level, analysts said.

“But prices are not likely to witness a big drop particularly because of the Brexit and French elections as they (are offering) very good support for gold at this time,” said Brian Lan, managing director at gold dealer GoldSilver Central in Singapore.

Spot gold was down 0,2 percent at $1 249,85 per ounce by 4.19am GMT. US gold futures were 0,4 percent lower at $1 249,30. Prime Minister Theresa May formally began Brexit — Britain’s divorce from the EU — on Wednesday, declaring there was no turning back and ushering in a tortuous exit process that will test the bloc’s cohesion and pitch her country into the unknown.

“The market seemed to take the notification of the Article 50 in the UK relatively smoothly, but I suspect the worst is yet to come on that. We’ll see how negotiations develop and the market is taking the wait-and-see approach at the moment,” said ANZ analyst Daniel Hynes.

“But certainly, there was a tiny bit of safe-haven buying.”

Meanwhile, French centrist Emmanuel Macron is on course to come out on top of the first round of France’s presidential election in April and go on to win in the May 7 runoff against far right leader Marine le Pen, an Elabe poll showed on Wednesday. — Reuters.