Gold has fallen more than one per cent as buyers cashed in gains from the biggest two-day rally in the metal since late 2008, made in the wake of Britain's shock vote to leave the European Union.
The metal jumped to its highest in more than two years at $US1,358.20 an ounce on Friday after the UK Brexit referendum vote, and to more than three-year highs in euro and sterling terms.
There was much less risk aversion in the world marketplace Tuesday, following two sessions of very rough trading waters. Safe haven gold prices saw some selling pressure on profit taking from the shorter-term futures traders, following the recent strong gains that pushed prices to a 27-month last Friday. Still, the gold market bulls are in firm near-term technical command. August Comex gold was last down $7.00 an ounce at $1,317.80. July Comex silver was last up $0.091 at $17.835 an ounce.
The VIX (volatility index) that is one measure of anxiety in the marketplace for stocks calmed to pre-Brexit readings Tuesday.
Most world stock markets rebounded Tuesday and U.S. stock indexes were solidly higher in afternoon New York trading. Other safe-haven assets--U.S. Treasuries and the U.S. dollar index also saw some selling pressure following their recent solid gains. The British pound and Euro currency have stabilized following their pounding taken after last week’s Brexit vote.
Reference: Business News, Kitco
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