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PRECIOUS-Gold hits 4-wk high as Asian stocks fall, dollar weakens

Published 13/06/2016, 05:06 pm
© Reuters.  PRECIOUS-Gold hits 4-wk high as Asian stocks fall, dollar weakens
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* Dollar sinks to 1-mth low against Japanese yen

* Asian shares fall the most in over four months ahead of central bank meets (Revises first paragraph to say gold hit a 4-week high, updates prices)

By Vijaykumar Vedala

BENGALURU, June 13 (Reuters) - Gold touched a four-week high on Monday, supported by a weaker dollar and a slide in Asian stocks ahead of key central bank meetings this week and a June 23 referendum on Britain's exit from the European Union.

The U.S. Federal Reserve, Bank of England, Swiss National Bank and Bank of Japan will all meet this week, and are expected to hold monetary policy steady against a backdrop of caution about the global economic outlook as well as the impact about a possible "Brexit". perceived as a hedge against economic and financial uncertainty, gold has so far gained 5 percent in June and 20 percent for the year.

Spot gold XAU= rose 0.6 percent to $1,281.96 an ounce at 0647 GMT. Bullion earlier touched a session best of $1,284.20 an ounce, its highest since May 16.

U.S. gold GCcv1 was up 0.7 percent at $1,285.10.

"The market is full of uncertainty over Brexit and also over the interest rate decision by FOMC (the Federal Open Market Committee) as well as other regional concerns," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.

"Gold has been up and $1,300 should be an immediate target at least for the coming week, with $1,240 being the support level."

Asian stocks fell the most in more than four months and the Japanese yen jumped on Monday as risky assets took a beating, boosting the precious metal. MKTS/GLOB

The dollar fell to a one-month low against the yen and stood at 106.03 yen JPY= , down about 0.9 percent.

Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.74 percent to 893.92 tonnes on Friday, the highest since October 2013.

Speculators raised their net long position in COMEX gold contracts in the week to June 7, and cut their bullish stance in silver, U.S. Commodity Futures Trading Commission data showed. could push a little higher during the early part of the week, but we expect it to hit some turbulence by Wednesday, the day of the Fed meeting," said INTL FCStone analyst Edward Meir in a note.

"That is when we expect the bank to signal that it is warming up to a rate increase for July," he said, adding a lack of a clear signal from the U.S. central bank could lead to further gains in gold.

Among other precious metals, spot silver XAG= fell 0.5 percent to $17.23 per ounce, while spot platinum XPT= was up 0.2 percent at $991.51 per ounce and spot palladium XPD= rose 0.3 percent to $544.16 per ounce.

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