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Gold rises on global uncertainties

March 16, 2019 00:00:00

BENGALURU, Mar 15 (Reuters): Gold rose on Friday, recovering from the previous session's sharp fall, as the dollar dipped and mounting concerns about a slowdown in global economic growth buoyed demand for the safe-haven metal.

Spot gold had gained by 0.6 per cent to $1,303.30 per ounce as of 0833 GMT, after shedding about 1.0 per cent the day before. It was on track for a small weekly gain for a second consecutive week.

US gold futures rose 0.6 per cent to $1,302.90 an ounce.

The dollar slipped 0.2 per cent against major currencies, and was on track for its biggest weekly loss since early December.

"The dollar has weakened and gold as a safe-haven asset has seen support from Brexit uncertainty. As long as gold can hold the $1,290 level, it can reach the first level of $1,302 and then $1,310," said Ajay Kedia, director at Kedia Commodities in Mumbai. "The support we are now seeing at $1,290 shows that as long as there is lack of clarity on the (Brexit) deal, gold should be holding well."

British lawmakers voted on Thursday to seek a delay in Brexit, setting the stage for Prime Minister Theresa May to renew efforts to get her divorce deal approved by the parliament next week.

Providing additional support to bullion were increasing signs of a global economic slowdown, analysts said.

The Bank of Japan on Friday cut its assessment on overseas economies, saying they were showing signs of a slowdown. It also revised down its view on exports and output.

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