Last week the Leave campaign had led the polls, but momentum has apparently shifted back to Remain.
The precious metal was put under further pressure as the United Kingdom' s vote to leave the European Union lost momentum. U.S. investors had been displaying fear about the potential for the United Kingdom to vote on a referendum to leave the European Union. The referendum has been dubbed the "Brexit" by investors. Analysts noted that the potential for a Brexit has caused volatility in the market, driving investors to gold as a safe haven, but Monday's news was a positive sign for equities.
The dollar tumbled on Monday as sterling surged toward its largest one-day percentage gain since 2008 after opinion polls swung in favor of the campaign for Britain to stay in the European Union, boosting risk sentiment.
Sterling was last up 2.3 percent at $1.4688, its largest one-day rise since Dec. 15, 2008
The dollar .DXY fell against a basket of major currencies, dropping to 93.449 in early trading, its lowest in more than two weeks. It was last down 0.6 percent at 93.654.
The euro rose 0.1 percent to 117.60 yen EURJPY=R, well above Thursday's three-year low of 115.51 yen. Against the dollar, the euro gained 0.3 percent to $1.1309 EUR=.
Investors reacted after three of six opinion polls published during the weekend showed a shift toward keeping Britain in the EU, with some citing the killing last week of pro-EU lawmaker Jo Cox as a factor.
The implied probability of a "Remain" vote in Thursday's referendum rose to around 78 percent after falling as low as 60 percent last Thursday, according to odds from gambling website Betfair.
Stocks and other riskier assets rose while traditional safe-havens fell in a reversal of the risk-off trading that has dominated markets for much of June.
European shares .FTEU3 rose 3.66 percent while the U.S. S&P 500 stock index was up 0.8 percent .SPX.
George Soros says Brexit could trigger 'Black Friday,' and a recession
A decision by the United Kingdom to exit the European Union would likely trigger a big sell-off in the pound, a sharp decline in household income and a recession, according to billionaire investor George Soros.
He cited three reasons: The Bank of England could not cut rates from already low levels; the U.K. has a large current account deficit and likely would not see another inflow of cash; and the loss of currency value wouldn't help exports, because of uncertainty in trading conditions that the Brexit would trigger.
"I want people to know what the consequences of leaving the EU would be before they cast their votes, rather than after," Soros wrote. "A vote to leave could see the week end with a Black Friday, and serious consequences for ordinary people."
- BOJ minutes from April meeting show some members worried about foreign risks
Some Bank of Japan policymakers said overseas economies continue to pose downside risks to Japan's economy and prices, minutes of a policy meeting held in April showed on Tuesday.
Those members also said the central bank should carefully examine these risks in the future and ease monetary policy without hesitation if needed.
- Oil up 3 percent as Brexit chances dim; gasoline surges too
Oil rallied on Monday, lifted by a wave of investor confidence and a weaker dollar after polls showed a diminishing chance that Britain may vote to leave the European Union later this week. August Brent crude futures were up $1.19, or 2.4%, at $50.36 a barrel, set for a gain of 6% in two trading days. US crude for July delivery, which expires on Tuesday, was up $1.18, or 2.5%, at $49.16 a barrel, CNBC reported.
Oil prices continued to recover despite data showing US energy firms adding oil rigs for a third week in a row, suggesting higher production to come. Oil services firm Baker Hughes reported nine rig additions in the week to June 17. Some analysts say the market is likely to be caught in a range, as any gains would likely be limited by the return of more shale drillers in the United States.
Reuters noted, oil prices rose 3 percent on Monday, settling higher for a second straight day, after polls showing a lower likelihood of Britain leaving the European Union while U.S. gasoline surged 5 percent in anticipation of peak summer driving demand.
U.S. gasoline futures RBc1 jumped 5 percent, their most in six weeks, as the rally in crude extended to refined oil products. Traders cited speculative buying in gasoline ahead of the July 4 Independence Day weekend when summer driving usually hits a high in the United States.
Reference: Reuters, CNBC, Financialtribune
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