* Gold snaps four-day rally below post-Brexit peak
* Uncertainty following UK vote underpins gold near highs
* Silver loses ground after surging to two-year high
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
(Updates prices, adds comment)
By Jan Harvey
LONDON, July 5 (Reuters) - Gold slipped below $1,350 an
ounce on Tuesday after the previous day's rally towards a recent
two-year high ran out of steam, though prices were supported by
continued uncertainty following Britain's vote to leave the
European Union.
The Brexit vote sent gold to its highest since early 2014 on
June 24. While concerns about global growth and monetary policy
continued to support gold it has failed to match that since.
Spot gold XAU= was down 0.2 percent at $1,347.90 an ounce
at 1330 GMT.
"There is some profit taking coming in," Mitsubishi analyst
Jonathan Butler said. "We've seen gross long positions in gold
reach record highs and clearly many investors are in a position
to take profit. We're some $100 above where we were in the
middle of last month."
Elevated risk aversion will likely continue to support gold
prices, however, he said.
European shares fell 1.4 percent as nervous investors cashed
in gains after a four-day winning streak ended on Monday,
despite hopes of increased central bank stimulus to offset a
likely downturn triggered by Brexit. .EU
The Japanese yen rose almost 1 percent against the euro and
dollar while sterling hit its lowest since the aftermath of the
Brexit vote. FRX/
"The market is extremely nervous," said Afshin Nabavi, head
of trading at MKS. "That's why gold and silver are benefiting."
U.S. gold futures GCv1 for August delivery were up $11.80
an ounce at $1,350.80. U.S. markets were closed on Monday for
the Independence Day holiday.
Silver XAG= was 2.4 percent lower at $19.80 an ounce,
having jumped above $21 an ounce for the first time in two years
in the previous session.
It posted its biggest weekly gain in nearly three years
following the Brexit referendum, hitting its most expensive
relative to gold since September 2014.
"Silver had soared by nearly 19 percent at its peak since
the beginning of last week without there having been any news to
justify such a pronounced price rise," Commerzbank (DE:CBKG) said in a
note. "Evidently speculative financial investors played a major
part in the price increase."
"In our opinion, there is now considerable correction
potential from this side. If the 'hot air' were to dissipate,
the silver price could come under more significant pressure."
Platinum XPT= was up 0.1 percent at $1,066 an ounce, while
palladium XPD= , which had fallen more than 4 percent earlier,
was down 1.6 percent at $603.90.
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GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
GRAPHIC-Gold/silver ratio: http://link.reuters.com/kuq35s
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