Bullion prices ended higher at Comex on Wednesday, 16 January 2019. Gold futures on Wednesday resumed their climb toward the psychologically important price of $1,300 an ounce, settling at their highest in nearly two weeks on the back of political turmoil in the U.K. and U.S.

Gold for February delivery climbed by $5.40, or 0.4%, to settle at $1,293.80 an ounce, while March silver rose 1.8 cents, or 0.1%, to $15.638 an ounce.

U.K. Prime Minister Theresa May's government suffered a historic defeat in a parliamentary vote Tuesday on her proposal for the terms of the country's departure from the European Union, which is scheduled for March 29. The plan was defeated overwhelmingly by a margin of 432-202 in the House of Commons. May's government faced a vote of no confidence late Wednesday. May was expected to survive the no-confidence challenge, but the path ahead in the Brexit process remains unclear.

Following gold's settlement on Wednesday, the U.S. Federal Reserve's Beige Book, a snapshot of domestic economic activity, revealed that contacts in “many” districts have become less optimistic in light of market volatility and political uncertainty. Shortly after the release, gold futures showed little reaction, with prices trading at $1,293.60.

Meanwhile, the U.S. dollar was little changed versus major rivals, with the ICE U.S. Dollar Index, a measure of the currency against a basket of six major rivals, nearly flat at 96.01. Gold and other commodities exhibit varying degrees of an inverse relationship with the dollar. A stronger dollar can weigh on demand by making commodities priced in the currencies more expensive to users of other currencies; a weaker dollar can have the opposite effect.

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