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· Gold prices barely moved on Thursday as investors waited for fresh developments on the Sino-U.S. trade front, and clarity on Brexit, after the European Union delayed a decision on granting Britain an extension.

Spot gold was unchanged at $1,492.34 per ounce by 0432 GMT. U.S. gold futures were flat at $1,495.10 per ounce.

· “Overall, gold is consolidating at the bottom of its medium-term range, implying that the next move is down, assuming the mini-trade deal goes through,” OANDA analyst Jeffrey Halley said, referring to the Sino-U.S. trade talks.

The trade war between the world’s two biggest economies has hit financial markets and forced most major central banks to cut interest rates this year.

Both have imposed a series of tit-for-tat tariffs over the past 15 months, stirring global recessionary fears and driving gold prices to climb more than 16% this year.

· The non-yielding bullion is often seen as a safer investment during times of political and financial uncertainty.

Halley pointed to a lot of stale long positions and said a breakdown through $1,460.00 was likely to prompt more long-term holders to unwind positions to lock in profit.

· European Union members on Wednesday delayed a decision whether to grant Britain a three-month extension on Brexit, while Prime Minister Boris Johnson said if the deadline was deferred until the end of January he would call an election by Christmas.

· Market participants await European and U.S. manufacturing numbers due later on Thursday, to gauge the health of the global economy, and a European Central Bank meeting, with no change to policy expected at President Mario Draghi’s last meeting.

· Investors also await the U.S. Federal Reserve’s meeting on Oct. 29 and 30, at which it is expected to cut its benchmark interest rate for a third consecutive time this year.

Federal fund futures imply that traders see a 91.4% chance for a 25 basis point rate cut.

· Asian shares pulled ahead on Thursday, with corporate earnings buffeting trading as investors remained anxious about the business impact of the Sino-U.S. trade war and Brexit uncertainties kept overall sentiment in check.

· SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.13% to 918.48 tonnes on Wednesday from 919.66 tonnes on Tuesday.

· Gold drops to $1,491 despite downbeat catalysts from Asia, Brexit uncertainty

Despite economic challenges from Asia and uncertainty surrounding the Brexit, Gold prices step back to $1,491 amid Asian session on Thursday.

Sluggish activity numbers from Australia and Japan join soft economic growth at South Korea to decorate Thursday’s Asian economic calendar.

On the news front, speculations mount for a general election in the United Kingdom (UK) while fears of an exit at the October 31 stay on card. It should also be noted that there was no major news concerning the US-China trade deal.

The US 10-year Treasury yields stay mostly unchanged around 1.76% following a mildly up closing of Wall Street.

Investors are now gearing up for an active day that comprising various Purchasing Manager Index (PMI) numbers from the European Union (EU) and the United States (US), coupled with the US Durable Goods Orders, New Home Sales, and Weekly Jobless Claims. However, major attention will be given to the European Central Bank’s (ECB) monetary policy decision as it will be the last for Mario Draghi as the President. The ECB isn’t expected to alter current monetary policy after announcing a heavy dose in the last meeting.

Technical Analysis

21-day Simple Moving Average (SMA) level of $1,493 seems to be the immediate upside barrier that holds the key to run-up towards a 50-day SMA level of $1,505. On the contrary, $1,477 and 100-day SMA level of $1,461 could question sellers.

· Elsewhere, silver was flat at $17.56 an ounce. Platinum was up 0.8% at $922.65 per ounce, after scaling a more than three-week high earlier, while palladium rose 0.6% to $1,752.63 per ounce.