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PRECIOUS-Gold hovers near 1-1/2 week lows ahead of Britain's vote on EU

Published 22/06/2016, 11:31 am
PRECIOUS-Gold hovers near 1-1/2 week lows ahead of Britain's vote on EU
XAU/USD
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AAL
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GC
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GLD
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AMSJ
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BENGALURU, June 22 (Reuters) - Gold hovered near its lowest in over a week on Wednesday as the dollar and Asian stocks remained steady on increasing indications that Britain would vote to remain in the European Union.

FUNDAMENTALS

* Spot gold XAU= was nearly flat at $1,268.16 an ounce by 0058 GMT. Bullion fell 1.7 percent on Tuesday registering its biggest one-day loss in a month, touching a low of $1,264.10, its worst since June 10.

* U.S. gold GCcv1 was down 0.1 percent at $1,271 an ounce.

* A vote on June 23 by Britain to leave the 28-member EU, dubbed "Brexit," could tip Europe back into recession, putting more pressure on the global economy, thereby increasing the safe-haven appeal of bullion.

* The Federal Reserve's ability to raise interest rates this year may hinge on a rebound in hiring that would convince policymakers the U.S. economy is not faltering, its head Janet Yellen told lawmakers on Tuesday. The dollar clung onto modest gains early on Wednesday, while sterling's short-covering rally lost momentum. USD/

* Asian stocks were steady on Wednesday as nervous investors counted down to Britain's make-or-break EU referendum, while Yellen's cautious tone on future rate hikes added to a subdued mood in markets.

* Gold could push on to its highest in nearly three years if the vote for Britain to leave the EU on Thursday lifts prices above key resistance at last week's high, technical analysts said on Tuesday. Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.39 percent to 912.33 tonnes on Tuesday, the highest since September 2013. GOL/ETF

* Global demand for palladium in automobiles will rise nearly 3 percent to a record in 2016 on growing Chinese demand for small cars and as lower oil prices have spurred U.S. sales of light trucks, CPM Group said on Tuesday. Anglo American (LON:AAL) Platinum AMSJ.J (Amplats) expects its half-year profit to fall by at least 20 percent due to weaker metal prices, the South African miner said on Tuesday. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

1300 U.S. monthly home price index

Apr

1400 Euro zone consumer confidence

Jun

1400 U.S. existing home sales

May

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