Gold prices settled higher on Wednesday for the first time in four sessions, as a retreat in some assets considered risky, amid political uncertainties like Brexit, underpinned gains in the yellow metal.
December gold GCZ19, -0.03% on Comex rose $8.20, or 0.6%, to settle at $1,495.70 an ounce, after a decline of less than 0.1% on Tuesday. Prices for the most-active contract remained below $1,500, which is viewed as a key level by technical traders. Prices haven't settled at that level since Oct. 10, according to FactSet data.
December silver SIZ19, +0.17% added 8 cents, or 0.5%, to $17.58 an ounce, recovering most of its 0.6% loss from a day ago.
For the week, gold prices are on track for a slight gain of 0.1%, while silver is poised to end about flat.
The weekly chart for gold prices "appears to have formed a bull flag formation and our guess is that the most likely catalyst for the next gold rally will be a risk-off event in the financial markets," such as a drop in stocks and rally in U.S. Treasurys, said Michael Armbruster, managing partner at Altavest.
Among exchange-traded products Wednesday, gold-backed SPDR Gold Shares GLD, +0.71% and iShares Silver Trust SLV, +1.59% each rose by 0.2%.
U.K. Prime Minister Boris Johnson scored a partial victory in his effort to achieve a divorce for the European Union after a vote to fast-track the process before an Oct. 31 deadline was rejected by parliament just ahead of a vote that agreed in principle to his divorce plan. The outcome means that Johnson must go to the European Commission and get an extension, raising some doubts about whether an orderly Brexit will be achieved.
Against that backdrop of uncertainty and some retrenchment in global stocks after a batch of mixed earnings revived worries about global economic growth, bullion has found some traction higher.
"As investors grow weary waiting for a resolution to the Brexit saga, they are bound to fall back on their flight-to-safety mantra as they let the U.K. political uncertainties play out," Han Tan, market analyst at FXTM, told MarketWatch. Also, "although investors' hopes over the U.S.-China 'phase-one' trade deal have dampened bullion of late, overarching concerns over the state of the global economy are expected to keep gold elevated going into next year."
Meanwhile, "the Indian Diwali festival begins Friday," said Jim Wyckoff, senior analyst at Kitco.com, in a daily note. "Gold demand from Indian consumers usually rises during the festival. However, reports say Indian consumer gold demand could decrease up to 50% this year due to higher gold prices and an increase the country's gold import duty."
In other metals trade, January platinum PLF20, +0.61% added 3% to $922.40 an ounce, while December palladium PAZ19, +0.50% fell 0.8% to reach $1,714.60 an ounce.
December copper HGZ19, -0.09% climbed by 1.5% to $2.6715 a pound.