Gold futures slid for the fourth straight day on its way to a two-week low with investors growing more pessimistic on the safe-haven asset due to the likelihood that British citizens vote to remain within the European Union.
Gold for August delivery on the Comex division of the New York Mercantile Exchange was last down $6.40 or 0.5 percent to $1,263.60 per ounce. Earlier, the contract touched $1,259.90, the lowest since June 8.
The UK referendum is currently ongoing and in recent days new polls show a surge in support the ‘Remain’ campaign.
Markets have experienced historic volatility in the run-up to the decision with turbulent conditions expected through the remainder of the week.
“There is not a lot more to say about today’s British vote,” Peter Hug, Kitco Metals Global Trading Director, said. “A snapshot of the global markets suggests that the ‘stay’ vote will succeed, but until the levers are pulled and the votes counted, expect a volatile day.”
The result is not expected eased until early Friday morning UK time, which could keep liquidity low over the Asian market open. But activity could spike from tomorrow especially if the ‘Leave’ campion emerges victorious.
However, tomorrow could see the return of spastic market conditions, especially if the Leave campion emerges victorious.
“Gold prices could get increasingly volatile tomorrow after the vote,” William Adams, Head of Research at FastMarkets, said. “A ‘remain’ vote will no doubt see short term profit-taking but a ‘leave’ vote may well have longer-term bullish consequences – it would open up a new chapter for Europe.”
In data today, US unemployment claims between June 10-17 came in at 259,000, under the forecast of 271,000 and more importantly below the psychological 300,000 mark.
Flash manufacturing PMI for June came in at 51.4, besting expectations of 50.6 and above the previous figure of 50.7.
Turning to US markets, the Dow Jones industrial average and S&P were up 0.8 percent and 0.9 percent respectively, while the dollar softened 0.6 percent at $1.1361 against the euro.
As for other precious metals, Comex silver for July settlement ticked up 1.3 cents or 0.1 percent to $17.325 per ounce. Trade has ranged from $17.215 to $17.500.
Platinum for July delivery declined $17.70 or 1.8 percent to $965.80 per ounce while the most-actively traded palladium contract stood at $562.85, down 60 cents or 0.1 percent.
(Editing by Tom Jennemann)
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Source: Bullion Desk News
