Gold rises on Brexit fears

GMT 00:18 2016 Saturday ,11 June

Arab Today, arab today Gold rises on Brexit fears

gold prices
chicago - Xinhua

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Friday as a new poll showed an increased chance of the United Kingdom leaving the European Union.

The most active gold contract for August delivery rose 3.20 U.S. dollars, or 0.25 percent, to settle at 1,275.90 dollars per ounce.

The precious metal was given extensive support as the poll released on Friday showed support among U.K. voters for remaining in the Eurozone at 43 percent and for leaving at 42 percent.

Fears about the potential impact of the British referendum vote in less than two weeks on whether it should leave the European Union has caused volatility in the market, driving investors to gold as a safe haven, analysts said.

Gold was given support as the U.S. Dow Jones Industrial Average fell by 170 points, or 0.95 percent as of 1720 GMT.

Analysts noted that when equities post losses, the precious metal usually goes up, as investors are looking for a safe haven, while the opposite is true when U.S. equities post gains.

However, a stronger U.S. dollar prevented the precious metal from rising further as the U.S. Dollar Index rose by 0.54 to 94.58 as of 1730 GMT.

Gold was put under pressure as a report released by the University of Michigan's Consumer Survey Center on Friday showed consumer sentiment level increasing to 94.3 which was on the higher end of expectations.

But analysts noted that weakness in inflation expectations did not add as much pressure to the precious metal as it would have if the level had been higher.

Silver for July delivery added 6.20 cents, or 0.36 percent, to close at 17.33 dollars per ounce. Platinum for July delivery fell 9.60 dollars, or 0.96 percent, to close at 994.20 dollars per ounce.

source : xinhua 

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