* SPDR Gold Trust holdings up 1.4 percent on Monday
* Gold rally has lost its momentum- StanChart
(Recasts first paragraph, updates prices)
By Vijaykumar Vedala
BENGALURU, June 28 (Reuters) - Gold fell on Tuesday as
investors booked profits, two days after the yellow metal
rallied to its highest since March 2014 thanks to safe-haven
demand in the wake of Britain's decision to exit the European
Union.
Gold soared as much as 8 percent to $1,358.20 on Friday, the
highest since March 2014, and had ended up 4.8 percent, its
biggest one-day gain since January 2009 as the British vote
drove investors toward safer assets.
Investors, however, scooped up beaten down assets on Tuesday
as sterling and Asian emerging market currencies regained some
footing and crude oil bounced, bringing down the demand for
gold. The safe haven asset is often perceived as a hedge against
economic and financial risk. MKTS/GLOB USD/
Spot gold XAU= was down 0.7 percent to $1,315.16 an ounce
by 0719 GMT. It rose 0.7 percent on Monday.
U.S. gold GCcv1 slipped 0.5 percent at $1,318.50.
"So far it has mainly been Chinese selling. They have been
good sellers the whole way up, especially when we passed $1,300.
We continue to see decent selling from them," said MKS Group
trader Alex Thorndike.
"It seems like the market is pausing here a bit now
considering the moves we have seen since Friday. But in a couple
of weeks I think we could see prices in the $1,375-$1,400
range."
British bank Standard Chartered (LON:STAN), however, said the gold
rally has lost its momentum and it would be difficult for the
metal to float above $1,300 an ounce.
"Once the immediate short-run rush to safety subsides and
assuming effective policy responses to allay capital market
concerns, we think gold will struggle to stay above $1,300/oz
during Q3, and will push back down towards USD 1,250/oz," the
bank said in a note.
Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 1.40 percent to 947.38
tonnes on Monday, the highest since July 2013. GOL/ETF
Among other precious metals, spot silver XAG= was down 0.5
pct to $17.64 per ounce.
Silver may break a resistance zone of $18.12 to $18.84 per
ounce and rise into a range of $21.09 to $22.07 over the next
three months, as indicated by a few Fibonacci retracement
analyses, Reuters technical analyst Wang Tao said.
Platinum XPT= rose 0.2 pct to $975.75 an ounce and
palladium XPD= was up 0.6 pct at $558.40.