PRECIOUS-Gold rebounds as economic worries linger after Brexit vote

Published 2016-06-29, 02:48 a/m
© Reuters.  PRECIOUS-Gold rebounds as economic worries linger after Brexit vote
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* Gold's premium to platinum jumps to record
* Silver hovers near Friday's 1-1/2-year high

(Updates prices)
By Vijaykumar Vedala
BENGALURU, June 29 (Reuters) - Gold rebounded on Wednesday
from its losses in the previous session on investor demands for
safety as uncertainty due to Brexit vote continued to pressure
financial markets.
Bullion fell 0.9 percent on Tuesday as investors booked
profits after a Brexit-driven rally that pushed prices up to
their highest since March 2014. Gold, which hit a high of
$1,358.20 on Friday, has risen 24 percent so far this year.
Spot gold XAU= rose 0.6 percent to $1,319.75 an ounce by
0632 GMT, up for a third session in four.
U.S. gold GCcv1 was up 0.4 percent at $1,323.50
"Despite Tuesday's impressive bounce in global equity
markets (leading to gold's modest retracement), we are not sure
whether these patterns will stay in place over the rest of the
week and would not be surprised to see more weakness in equities
going into Wednesday's session," said INTL FCStone analyst
Edward Meir.
"As a result, gold could recover the ground it lost on
Tuesday, with geo-political headlines outside Europe possibly
providing an additional element of support."
Spot gold was at its highest relative to platinum XPT= on
record this week as institutional and retail investors have
piled into bullion following the shock referendum verdict.

Jiang Shu, chief analyst at Shandong Gold Group, said gold
could trade between $1,400 to $1,450 an ounce in the next 2-3
weeks provided Brexit is not seen as a long-term threat to
global economic development.
"If Brexit is seen severely impacting the market, central
banks will step in to calm the markets, which would not be good
for gold," he added.
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. 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 by slowing, Federal Reserve governor Jerome Powell
said on Tuesday.
Asian shares were swept up in a global relief rally on
Wednesday, while a semblance of stability helped the pound and
the euro hover above their post-Brexit lows, though the battered
European currencies remain hampered by longer term uncertainty.
MKTS/GLOB USD/
Among other precious metals, spot silver XAG= gained 2.5
percent to $18.20 per ounce and tread close to Friday's
one-and-half-year high of $18.31.
Platinum XPT= climbed 1.1 pct to $984.99 an ounce and
palladium XPD= rose 0.6 pct to $571.47.

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