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Gold Inches Up Close To A Two-Week High Amid Brexit Woes

Olga Robert

In the international market, gold scaled to its near two-week high on Wednesday, reclaiming the $1,300 level in a previous session, after British lawmakers rejected Prime Minister's Teresa May's amended Brexit deal. Additionally, weakness in the dollar increased the appeal for the safe haven metal among traders.

Spot gold, the price at which the metal is traded in the international stock market, was up by 0.3 percent to $1,305.21 an ounce. It touched $1305.69 in an earlier session, its highest since 1 March.

On Tuesday, the British Parliament rejected May's deal to leave the European Union for the second time. The country's political crisis has deepened because it does not have a deal yet with the deadline of 29 March for the planned departure drawing closer. This also increases the uncertainties of the departure as the risk of a potential 'Hard Brexit' or 'No deal Brexit' prevails.

On Wednesday and Thursday, respectively, the British lawmakers will likely get to vote on whether the United Kingdom should leave the 28-member bloc with no deal, or should it request an extension to the deadline.

The second rejection of the deal proposed by the British PM has increased the possibility of a "no deal" Brexit.

Gold prices in India may also see a movement reflecting the global trend. However, a stronger rupee will soften the blow.

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