PRECIOUS-Gold touches two-week low as Britain gears up for EU vote

Published 2016-06-22, 09:34 p/m
© Reuters.  PRECIOUS-Gold touches two-week low as Britain gears up for EU vote
XAU/USD
-
GC
-
GLD
-

BENGALURU, June 23 (Reuters) - Gold touched a fresh two-week
low early on Thursday on cautious optimism that British voters
would opt to stay in the European Union at referendum later in
the session, thereby boosting Asian stocks and reducing risk
aversion.

FUNDAMENTALS
* Spot gold XAU= fell 0.3 percent to $1,262.26 an ounce by
0057 GMT. Bullion touched a low of $1,260.36 earlier in the
session, its worst level since June 9.
* U.S. gold GCcv1 was down 0.4 percent to $1,265.30.
* The campaign to keep Britain in the European Union got a
boost from two opinion polls published late on Wednesday, a few
hours before voters begin to cast their votes in a historic EU
membership referendum.
* A vote by Britain to leave the 28-member EU, dubbed
"Brexit," could tip Europe back into recession, putting more
pressure on the global economy, thereby boosting the safe haven
appeal of gold. Polling will take place between 0600-2100 GMT on
Thursday, with the results expected early on Friday.
* Asian shares edged up, while the pound rose to a six-month
high against the dollar. MKTS/GLOB USD/
* Federal Reserve Chair Janet Yellen said she has not
scheduled special meetings for Friday or Saturday in order to
respond to the "Brexit" vote.
* U.S. home resales rose in May to a more than nine-year
high amid low mortgage rates, pointing to sustained housing
market strength that should keep the economy on solid ground.

* International Monetary Fund Managing Director Christine
Lagarde said on Wednesday that the Federal Reserve should avoid
"abrupt" interest rate moves and focus on stability in its
monetary policy.
* Holdings in SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.39 percent to 915.90
tonnes on Wednesday, the highest since September 2013. GOL/ETF
* Gold's sharp gains on uncertainty over Britain's European
Union membership are likely to come to an end, regardless of
whether Britons vote to leave or remain in Thursday's
referendum.
* For the top stories on metals and other news, click
TOP/MTL or GOL

DATA AHEAD (GMT)
Britain holds referendum on membership in European Union
0700 France Markit manufacturing flash PMI Jun
0700 France Markit services flash PMI Jun
0730 Germany Markit manufacturing flash PMI Jun
0730 Germany Markit services flash PMI Jun
0800 Euro zone Markit manufacturing flash PMI Jun
0800 Euro zone Markit services flash PMI Jun
1230 U.S. weekly jobless claims
1230 U.S. National activity index May
1345 U.S. Markit manufacturing flash PMI Jun
1400 U.S. New home sales May
1400 U.S. Leading index May

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.