* Gold falls 1 pct after biggest two-day rally since 2008
* Global stocks rebound for first time in three days
* Sterling climbs off 31-year low vs the dollar
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC (Updates prices; adds comment, second byline, NEW YORK dateline)
By Marcy Nicholson and Jan Harvey
NEW YORK/LONDON, June 28 (Reuters) - Gold fell more than 1 percent on Tuesday as buyers cashed in gains from the biggest two-day rally in the metal since late 2008, made in the wake of Britain's shock vote to leave the European Union last week.
The metal jumped to its highest in more than two years at $1,358.20 an ounce on Friday after the UK referendum vote, and to more than three-year highs in euro and sterling terms. It quickly retreated from that peak, however.
Spot gold XAU= was down 1 percent at $1,311.60 an ounce at 3:15 p.m. EDT (1915 GMT), off an earlier low of $1,305.23. Bullion was on track to finish June up 8 percent and the second quarter up more than 6 percent.
U.S. gold futures GCv1 for August delivery settled down 0.5 percent at $1,317.90.
World stocks rose for the first time in three days and sterling and the euro strengthened as investors snapped up assets hurt by some of the biggest falls since the 2008 collapse of Lehman Brothers. MKTS/GLOB GVD/EUR
"Gold is taking a well-deserved breather," Saxo Bank's head of commodity strategy said. "Risk appetite is returning for now and with that, worries about the very rapid build-up of long positions leading up to Brexit."
European leaders told Britain on Tuesday to act quickly to resolve the political and economic chaos unleashed by its vote to leave the European Union, a move the IMF said could put pressure on global growth. currencies, sterling rose from 31-year lows against the dollar while the euro climbed 0.3 percent against the U.S. currency. FRX/
"We believe that Britain's forthcoming exit from the EU will, on balance, remain positive for gold," said Metals Focus in a note, adding, however, that short-term downside risks to the gold price have developed.
"If we have news that there is stress in the financial system, which might make people think we are moving into a Lehman-like moment, that could trigger higher gold prices," Julius Baer analyst Carsten Menke said.
Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, climbed to the highest since July 2013, on Monday. GOL/ETF
Spot silver XAG= rose 0.2 percent to $17.75 an ounce.
"From a technical perspective, silver looks poised for further gains," said Fawad Razaqzada, technical analyst for Forex.com.
"Following last week's Brexit vote, silver formed a large bullish engulfing candle on its daily chart on Friday."
Platinum XPT= was up 0.3 percent at $977.21 and palladium XPD= was 2.6 percent higher at $569.65.
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