Gold turned lower on Thursday, as sterling bounced higher and U.S. stock markets came well off their lows following the suspension of Britain's campaign for next week's referendum after a member of parliament was shot dead.
British Member of Parliament Jo Cox, who was killed in the street in her constituency in northern England earlier in the day, had been a vocal supporter of Britain remaining within the EU.
Gold fell from the highest in almost two years as traders pared bets on the outcome of next week’s U.K. vote on membership in the European Union, reducing demand for the metal as a haven.
The pound erased losses against the dollar after the killing of a U.K. lawmaker Thursday fueled speculation the nation’s voters will be more likely to favor remaining in the European Union in next week’s referendum. Gold has advanced this month as those pushing to leave the EU held a steady lead in opinion polls.
“The takeaway is that if there’s no Brexit, then it would mean the need for haven buying of gold will lessen,” George Gero, a managing director at RBC Wealth Management in New York, said in telephone interview.
Gold for immediate delivery fell 0.4 percent to $1,286.20 an ounce at 2:42 p.m. in New York, according to Bloomberg generic pricing. The metal rose as much as 1.9 percent earlier, touching the highest since August2014.
The death of the U.K. Labor Party lawmaker led to a suspension of campaigning before the June 23 Brexit referendum.
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