PRECIOUS-Gold gains on economic worries after Brexit vote

Published 2016-06-28, 09:24 p/m
© Reuters.  PRECIOUS-Gold gains on economic worries after Brexit vote
XAU/USD
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BENGALURU, June 29 (Reuters) - Gold rose early on Wednesday
after dropping about a percent in the prior session, as concerns
of uncertainty across financial markets in the aftermath of
Britain's vote to exit the European Union continued to burnish
the metal's safe-haven appeal.

FUNDAMENTALS
* Spot gold XAU= rose 0.3 percent to $1,315.51 an ounce by
0100 GMT, up for a third session in four. It fell on Tuesday as
investors booked profits after a Brexit-driven rally that pushed
prices up to their highest since March 2014.
* U.S. gold GCcv1 was up 0.1 percent at $1,318.80.
* Spot gold was at its highest relative to platinum XPT=
on record this week as institutional and retail investors have
piled into bullion following Britain's shock vote to exit the
European Union.
* Gold, which hit a more than two-year top of $1,358.20 on
Friday, has risen 24 percent so far this year.
* European leaders have asked Britain to act quickly to
resolve the political and economic confusion unleashed by its
vote to exit the European Union, after the IMF said the
uncertainty could pressure global economic growth.
* Britain's vote to leave the bloc could pose a new drag on
the U.S. economy at a time when momentum in the U.S. job market
may already be slowing, Federal Reserve governor Jerome Powell
said on Tuesday.
* The pound and the euro hovered above their post-Brexit
lows as a brief short-covering spell lent a semblance of
stability to the battered European currencies, though they
remained hampered by longer-term uncertainty. USD/
* Japan's retail sales fell more than expected in May in a
third straight month of annual declines, keeping policymakers
under pressure for more stimulus to support a fragile economic
recovery.
* For the top stories on metals and other news, click
TOP/MTL or GOL

MARKET REPORT
* Asian share markets joined a global rally on Wednesday as
the immediate impact of Britain's vote to leave began to wane
and investors wagered central banks would have to ride to the
rescue with more stimulus measures. MKTS/GLOB
* Oil rose early on Wednesday as financial traders poured
money back into commodities and as a potential strike in Norway
and crisis in Venezuela threatened to cut supply. O/R

DATA AHEAD (GMT)
0600 Germany GfK consumer sentiment Jul
0900 Euro zone business climate Jun
1200 Germany consumer prices Jun
1230 U.S. personal income May
1330 Federal Reserve Chair Janet Yellen speaks at ECB event
1400 U.S. Pending home sales May

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