WASHINGTON (dpa-AFX) - Gold prices edged higher on Wednesday with traders seeking the safe haven asset amid political uncertainty in the U.S. due to the government shutdown and in the U.K. on the Brexit issue.
Gold's uptick was also supported by a subdued dollar on expectations the Federal Reserve will go slow on rate hikes this year.
Gold futures for February ended up $5.40, or 0.4%, at $1,293.80 an ounce, a near two-week closing high.
On Tuesday, gold futures ended down $2.90, or 0.2%, at $1,288.40 an ounce.
Silver futures for March settled at $15.638 an ounce, up $0.0.18 from previous close. Meanwhile, copper futures for March ended at $2.673 per pound, up $0.039 from Tuesday's close.
British Prime Minister Theresa May's Brexit plan suffered a historic defeat in the House of Commons on Tuesday and May is now facing a motion of no confidence in her government.
If May survives the vote of no confidence, there will not be a general election and she has to come back to Parliament with a Plan B.
In U.S. economic news, a report released by the Labor Department showed another steep drop in import prices in the month of December, reflecting a continued nosedive in fuel prices. The report said import prices tumbled by 1% in December after plunging by a revised 1.9% in November.
Economists had expected import prices to plummet by 1.3% compared to the 1.6% slump originally reported for the previous month.
The report said export prices fell by 0.6% in December, in line with expectations, after sliding by a revised 0.8% in November.
A separate report from the National Association of Home Builders showed an unexpected improvement in homebuilder confidence in January. The report said the NAHB/Wells Fargo Housing Market Index rose to 58 in January after slumping to 56 in December. Economists had expected the index to come in unchanged.
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