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PRECIOUS-Gold holds steady as global stocks weaken after Brexit vote

Published 28/06/2016, 11:18 am
© Reuters.  PRECIOUS-Gold holds steady as global stocks weaken after Brexit vote
XAU/USD
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GC
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BENGALURU, June 28 (Reuters) - Gold held near its highest in over two years early on Tuesday, buoyed by safe-haven demand after global stock markets plummeted in the wake of Britain's decision to exit the European Union.

FUNDAMENTALS

* Spot gold XAU= was nearly flat at $1,324.60 an ounce by 0055 GMT. It rose 0.7 percent on Monday.

* U.S. gold GCcv1 was up 0.2 percent at $1,327.90.

* Bullion rallied 8 percent to $1,358.20 at one stage on Friday, the highest price since March 2014, and ended up 4.8 percent, its biggest one-day gain since January 2009 as the British vote sparked sales of riskier assets. Gold is often perceived as a hedge against economic and financial risk.

* Britain's vote last Thursday to leave the EU continued to reverberate through financial markets on Monday, with the pound falling to its lowest level in 31 years, despite government attempts to relieve some of the confusion about the political and economic outlook. Global equities took another step down in Asia on Tuesday, with regional markets sliding. MKTS/GLOB USD/

* Holdings in SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, rose 1.40 percent to 947.38 tonnes on Monday, the highest since July 2013. GOL/ETF

* Spot gold XAU= may rise into a range of $1,483-$1,527 per ounce over the next three months, as suggested by a Fibonacci retracement analysis and its wave pattern, according to Reuters technical analyst Wang Tao. Retail gold investors are booking profit on metal bought to hedge against Thursday's decision by British voters to leave the European Union, while an initial surge in buying slackened off on Monday. Billionaire investor Stanley Druckenmiller's Duquesne Family Office LLC was long gold futures ahead of last week's vote in Britain to leave the European Union, a source familiar with the matter said on Monday. Russia plans to tender the Sukhoi Log gold deposit this year, which may happen at the end of summer-beginning of autumn, Russian Natural Resources Minister Sergei Donskoi told reporters on Monday. Top consumer China's gold imports in May via main conduit Hong Kong rose to the highest level since December, surging 68 percent from the previous month, data showed on Monday. For the top stories on metals and other news, click TOP/MTL or GOL

DATA AHEAD (GMT)

0600 Germany import prices

May

0645 France consumer confidence

Jun

1230 U.S. GDP final

Q1

1300 U.S. S&P/Case-Shiller housing index

Apr

1400 U.S. consumer confidence

Jun

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