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PRECIOUS-Gold slips as Brexit shock fades

Published 30/06/2016, 11:15 am
PRECIOUS-Gold slips as Brexit shock fades
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BENGALURU, June 30 (Reuters) - Gold edged down on Thursday after rising as much as 1 percent during the previous session, with safe-haven demand easing as the shock of Britain's decision to leave the European Union began to fade.

FUNDAMENTALS

* Spot gold XAU= had fallen 0.3 percent to $1,313.99 an ounce by 0055 GMT. It closed about 0.5-percent higher on Wednesday, rising for three out of four sessions.

* U.S. gold GCcv1 was down 0.8 percent at $1,316.90.

* Silver XAG= climbed around 3 percent to reach a 1-1/2 year high on Wednesday.

* Asia stocks rose on Thursday, tracking an overnight rally on Wall Street, while the safe-haven Japanese yen retreated as global markets regained a semblance of calm after last week's Brexit shock. MKTS/GLOB

* The dollar took a breather in Asia on Thursday but remained near a 3-1/2 month high against a basket of currencies hit in the wake of Britain's stunning vote to exit from the EU, while recently battered sterling crawled higher. USD/

* Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 0.28 percent to 950.05 tonnes on Wednesday, the highest since July 2013. The U.S. economy is on track to grow by a 2.7 percent annualized rate in the second quarter following data on consumer spending in May, the Atlanta Federal Reserve's GDPNow forecast model showed on Wednesday. U.S. consumer spending rose for a second straight month in May on increased demand for automobiles and other goods. The European Central Bank is in no rush to ease monetary policy in response to Britain's vote to leave the European Union, taking comfort in a calmer-than-feared market reaction, bank officials said on Wednesday. Oil and gold were the clear winners for investors in a tumultuous first half year in markets, with Shanghai A shares the standout losers and euro zone stocks dealt a body blow by Brexit. JPMorgan Chase & Co (NYSE:JPM) JPM.N on Wednesday won the dismissal of three private antitrust lawsuits, including from hedge fund manager Daniel Shak, accusing the largest U.S. bank of rigging a market for silver futures contracts traded on COMEX. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT) 0600 Germany

Retail sales

May

0645 France

Producer prices

May

0755 Germany

Unemployment rate

Jun

0830 Britain

GDP

Q1

0900 Euro zone

Inflation

Jun

1230 U.S.

Weekly jobless claims

1345 U.S.

Chicago PMI

Jun

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