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Gold on the rise

The gold price is on the rise as concerns continue to surround global growth and Brexit remains unresolved ahead of a March 29 deadline.
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UK PM Theresa May

Staff reporter

European markets look set for a downbeat start today as Brexit uncertainties deepen, with MPs rejecting UK prime minister Theresa May's deal to withdraw from the EU.

Toronto was looking up but US market futures were pointing lower.

All base metals had closed in the black on the London Metal Exchange for the first time since February 22, Marex Spectron's Dee Perera on the LME desk noted.

The metals and mining sector had enjoyed a 1.7% gain in Toronto yesterday, where Eldorado Gold (TSX: ELD) rose 6.4% on no news.

Among the majors, Rio Tinto (LSE: RIO ) rose 0.47% in London yesterday, Newmont Mining (NYSE: NEM) gained 3.2% in New York and Teck Resources (TSX: TECK.B) was up 1.9%.

The gold sector continues to shine on the ASX, where Saracen Minerals (ASX: SAR) was up 4% at the time of writing and acquisitive Newcrest Mining (ASX: NCM) was more than 3% higher.

The spot gold price was back up over US$1,300 an ounce after spending most of this month below the psychological benchmark, trading earlier close to $1,305/oz, as global growth concerns remain.

"We're pretty concerned about the direction of global growth partly because we can't see who is going to come and save us this time," Vulpes Investment Management founder and CEO Steve Diggle told Bloomberg TV.