Gold prices were flat on Tuesday in Asia as a bounce in Asian stocks stoked interest in riskier assets, although investors remained cautious ahead of a key Brexit vote.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange slipped 0.04% at 1,290.75 a troy ounce. Gold cracked the $1,300 resistance on Jan. 4, reaching an intraday high of $1,300.40, before falling back.
Asian equities recovered on Tuesday, wither Chinese and Hong Kong stocks gaining about 1% after China said it would cut taxes “on a larger scale” to support its economy.
“The Brexit negotiations and the trade talks with China continue to be the headline stories” for gold, said Walter Pehowich, executive vice-president at Dillon Gage Metals in Addison, Texas.
“If the partial U.S. government shutdown continues, I expect it will eventually weigh heavily an equity prices as well, sending more investors over to the gold and bond markets,” Pehowich added.
