India's demand for gold has fallen by 6%, even as total spending on the precious metal reached a record high, according to the World Gold Council.

The latest figures suggest that while Indians continue to value gold for weddings, festivals, and investments, soaring prices are changing buying behavior. Consumers are increasingly opting for lighter jewellery, delaying purchases, or waiting for discounts and festive offers. Meanwhile, investment preferences are also evolving, with digital gold and other alternatives gaining traction as physical gold purchases slow.

India's Gold Demand Falls 6% Despite Record Spending | Why Indians Are Buying Less Gold

China's appetite for gold is showing no signs of slowing down. The world's largest bullion market imported around 173 tonnes of gold in June, marking the highest monthly import level since March 2024 and extending gains for the third consecutive month.

The surge comes after international gold prices corrected sharply from their early-2026 highs, encouraging investors to buy the dip. A stronger Chinese yuan also made overseas gold purchases more affordable, while commercial banks accelerated imports before a new licensing regime took effect.

China's Gold imports hit highest level since 2024 | Gold demand surges as prices fall

China's bullion imports fell substantially last month as demand in the world's largest consumer weakened due to record prices. According to the most recent customs data, international purchases of physical gold crashed to 136 tons in April, a 30 per cent decrease from the previous month and the lowest sum this year.

The reduction in imports comes as gold prices continue to be largely impacted by US interest rates. However, bullion's recent gain has been mostly driven by strong consumption in China, where investment opportunities are more limited than in other countries. Amid a lengthy real estate crisis, turbulent stock markets, and a weakening yuan, Chinese households and investors have flocked to gold as a haven for safety, fostering its climb to all-time highs.

China's central bank has also been a persistent buyer of gold, increasing its holdings for the 18th straight month to&nbsp;diversify its reserves and safeguard against currency devaluation. Nonetheless, the rate of these purchases slowed in April, reflecting the overall trend in the country's gold imports.

"Moderating imports may give gold bulls pause," said Soni Kumari, commodity strategist at ANZ Group Holdings Ltd. "While Chinese demand is likely to remain strong in 2024, it's set to level off."

Adding to the pressure on the gold market, Chinese officials have issued cautions about excessive speculation. In the latest effort to reduce risk-taking, the Shanghai Gold Exchange tightened margin requirements on some contracts beginning Tuesday.

As China's thirst for gold cools, market analysts will keep a careful eye on the effects on global bullion prices and the larger commodities market.

(With inputs from Bloomberg)&nbsp;

China's bullion imports fell substantially last month as demand in the world's largest consumer weakened due to record prices. According to the most recent customs data, international purchases of physical gold crashed to 136 tons in April, a 30 per cent decrease from the previous month and the lowest sum this year.

China's bullion imports fell substantially last month as demand in the world's largest consumer weakened due to record prices. According to the most recent customs data, international purchases of physical gold crashed to 136 tons in April, a 30 per cent decrease from the previous month and the lowest sum this year. The reduction in imports comes as gold prices continue to be largely impacted by US interest rates. However, bullion's recent gain has been mostly driven by strong consumption in China, where investment opportunities are more limited than in other countries. Amid a lengthy real estate crisis, turbulent stock markets, and a weakening yuan, Chinese households and investors have flocked to gold as a haven for safety, fostering its climb to all-time highs. China's central bank has also been a persistent buyer of gold, increasing its holdings for the 18th straight month to diversify its reserves and safeguard against currency devaluation. Nonetheless, the rate of these purchases slowed in April, reflecting the overall trend in the country's gold imports. "Moderating imports may give gold bulls pause," said Soni Kumari, commodity strategist at ANZ Group Holdings Ltd. "While Chinese demand is likely to remain strong in 2024, it's set to level off." Adding to the pressure on the gold market, Chinese officials have issued cautions about excessive speculation. In the latest effort to reduce risk-taking, the Shanghai Gold Exchange tightened margin requirements on some contracts beginning Tuesday. As China's thirst for gold cools, market analysts will keep a careful eye on the effects on global bullion prices and the larger commodities market. (With inputs from Bloomberg)

China’s gold imports plunge amid record prices and economic uncertainty

Gold was headed for biggest quarterly gain since pandemic-led surge in mid-2020. Gold's safe-haven appeal is also understood to have been bolstered by Ukraine crisis.

Spot gold XAU= was up 0.4% at $1,940.95 per ounce by 12:22 p.m. EDT (1622 GMT). For the month, bullion was up about 1.7%.

US gold futures GCv1 rose 0.4% to $1,946.90.

"The geopolitical situation has been dragging for a month now and inflation data continues to rise. So the overall sentiment in this market right now is people looking for safety," RJO Futures senior market strategist Bob Haberkorn said.

Gold is considered a safe investment during times of political and financial uncertainty.

Data showed U.S. consumer spending slowed significantly in February, while price pressures continued to mount, with the largest annual spike in inflation since the early 1980s. (Full Story)

Russia's invasion, which began on Feb. 24, has fuelled a rally in oil prices and industrial metals.

"We could see a pullback in gold if there is some positive news that comes out of the Russia-Ukraine conflict, but I think traders will look at that as a buying opportunity because of inflation fears," Haberkorn said.

The Federal Reserve has hinted toward aggressive rate hikes this year to fight against soaring inflation, which investors fear could send the U.S. economy into a recession.

A pullback in benchmark U.S. 10-year Treasury yields on Thursday also supported gold. US/

Silver XAG= inched 0.1% higher to $24.86 per ounce. Platinum XPT= fell 0.7% to $983.50. Both metals were set for quarterly gains.

Palladium XPD= rose 0.2% to $2,269.97 and was headed for its biggest quarterly jump since March 2020.&nbsp; 
&nbsp;

Gold was headed for biggest quarterly gain since pandemic-led surge in mid-2020. Gold's safe-haven appeal is also understood to have been bolstered by Ukraine crisis.

Gold was headed for biggest quarterly gain since pandemic-led surge in mid-2020. Gold's safe-haven appeal is also understood to have been bolstered by Ukraine crisis. Spot gold XAU= was up 0.4% at $1,940.95 per ounce by 12:22 p.m. EDT (1622 GMT). For the month, bullion was up about 1.7%. US gold futures GCv1 rose 0.4% to $1,946.90. "The geopolitical situation has been dragging for a month now and inflation data continues to rise. So the overall sentiment in this market right now is people looking for safety," RJO Futures senior market strategist Bob Haberkorn said. Gold is considered a safe investment during times of political and financial uncertainty. Data showed U.S. consumer spending slowed significantly in February, while price pressures continued to mount, with the largest annual spike in inflation since the early 1980s. (Full Story) Russia's invasion, which began on Feb. 24, has fuelled a rally in oil prices and industrial metals. "We could see a pullback in gold if there is some positive news that comes out of the Russia-Ukraine conflict, but I think traders will look at that as a buying opportunity because of inflation fears," Haberkorn said. The Federal Reserve has hinted toward aggressive rate hikes this year to fight against soaring inflation, which investors fear could send the U.S. economy into a recession. A pullback in benchmark U.S. 10-year Treasury yields on Thursday also supported gold. US/ Silver XAG= inched 0.1% higher to $24.86 per ounce. Platinum XPT= fell 0.7% to $983.50. Both metals were set for quarterly gains. Palladium XPD= rose 0.2% to $2,269.97 and was headed for its biggest quarterly jump since March 2020.

Gold poised for biggest quarterly gain in almost 2 years

Gold prices on Thursday clawed back from the previous session's 2-1/2 month low, as a retreat in U.S. Treasury yields lifted the non-yielding bullion's appeal.

Spot gold rose 0.3% to $1,781.50 per ounce by 0807 GMT, having dropped to its lowest since Nov. 30 at $1,768.60 on Wednesday. U.S. gold futures advanced 0.4% to $1,780.40.

"The U.S. long-dated yields backing off highs is offering some support. It also appears dip buyers from China have returned from Lunar New Year holidays," said OANDA senior market analyst Jeffrey Halley.

"In the bigger picture ... gold is merely pausing for breath, $1,760 remains a critical level, a break below that suggests deeper losses to the $1,600/$1,650 region."

Benchmark 10-year Treasury yields retreated from a near one-year peak hit on Wednesday. Lower yields reduce the opportunity cost of holding bullion, which pays no interest.

Federal Reserve officials were still prepared to keep monetary policy easy to help the coronavirus-hit economy, minutes of the Fed's January meeting showed.

Investor focus remained on the developments of a $1.9 trillion U.S. coronavirus stimulus.

U.S. retail sales rebounded in January, while U.S. producer prices increased by the most since 2009, suggesting inflation was starting to rise.

"Other asset classes as well as those within commodities are providing a more compelling investment payoff than gold presently," cautioned Michael Langford, director at corporate advisory AirGuide.

"We're seeing a re-allocation under renewed optimism, factory orders and general views of stronger underlying growth," Langford said, adding gold's typical attribute as an inflationary hedge was not enough to counter the strong demand for other assets.

Analysts also said the recent technical move of gold's 50-day moving average price dipping below the 200-day moving average, known as a death cross, could lead to more selling.

Silver eased 0.7% to $27.17 an ounce. Platinum gained 0.3% to $1,256.86 and palladium rose 0.1% to $2,372.59.

Gold prices on Thursday clawed back from the previous session's 2-1/2 month low, as a retreat in U.S. Treasury yields lifted the non-yielding bullion's appeal. Spot gold rose 0.

Gold prices on Thursday clawed back from the previous session's 2-1/2 month low, as a retreat in U.S. Treasury yields lifted the non-yielding bullion's appeal. Spot gold rose 0.3% to $1,781.50 per ounce by 0807 GMT, having dropped to its lowest since Nov. 30 at $1,768.60 on Wednesday. U.S. gold futures advanced 0.4% to $1,780.40. "The U.S. long-dated yields backing off highs is offering some support. It also appears dip buyers from China have returned from Lunar New Year holidays," said OANDA senior market analyst Jeffrey Halley. "In the bigger picture ... gold is merely pausing for breath, $1,760 remains a critical level, a break below that suggests deeper losses to the $1,600/$1,650 region." Benchmark 10-year Treasury yields retreated from a near one-year peak hit on Wednesday. Lower yields reduce the opportunity cost of holding bullion, which pays no interest. Federal Reserve officials were still prepared to keep monetary policy easy to help the coronavirus-hit economy, minutes of the Fed's January meeting showed. Investor focus remained on the developments of a $1.9 trillion U.S. coronavirus stimulus. U.S. retail sales rebounded in January, while U.S. producer prices increased by the most since 2009, suggesting inflation was starting to rise. "Other asset classes as well as those within commodities are providing a more compelling investment payoff than gold presently," cautioned Michael Langford, director at corporate advisory AirGuide. "We're seeing a re-allocation under renewed optimism, factory orders and general views of stronger underlying growth," Langford said, adding gold's typical attribute as an inflationary hedge was not enough to counter the strong demand for other assets. Analysts also said the recent technical move of gold's 50-day moving average price dipping below the 200-day moving average, known as a death cross, could lead to more selling. Silver eased 0.7% to $27.17 an ounce. Platinum gained 0.3% to $1,256.86 and palladium rose 0.1% to $2,372.59.

Gold off two and half months low as US Treasury yields retreat

Asian markets advanced again Wednesday as investors ignored a stall in Wall Street's rally, with eyes firmly on the long-term outlook for the global economy as lockdowns are eased and life slowly improves.

Falling infection rates, growing vaccination programmes and the prospects of a huge spending splurge by the US government within months continue to keep the mood on trading floors upbeat.

However, there remain worries that prices may have gone a little too far, which analysts said was capping any surge for now.

Declines in new cases, deaths and hospitalisation in major economies including the United States, Britain and Europe are fanning expectations they can begin opening up soon.

There is also apparently little concern about the emergence of new strains in parts of the world that some have warned could be more resistant to the vaccines.

"There is no evidence that new strains compromise protection against severe illness, and positive signs that consensus is shifting to re-opening once the most vulnerable are protected," said Stephen Innes at Axi.

Hong Kong led Wednesday's rally, piling on 1.8 percent above 30,000 thanks to a surge in Tencent and NetEase following news Chinese authorities had given the green light to their most eagerly awaited video games.

Shanghai also rose more than one percent as investors welcomed data showing China's factory gate prices rose for the first time in a year in January, indicating the economy was on a recovery track.

Gains in Tokyo were capped by news the Japanese government will keep containment measures in place for the time being.

Sydney, Seoul, Manila, Jakarta and Bangkok also rose but Mumbai, Singapore and Wellington fell slightly.

"Activity in Asia suggests that regional investors are not taking positioning off the boards ahead of the Lunar New Year holidays. If anything, it is precisely the opposite with Asian markets performing well" on Wednesday, said OANDA's Jeffrey Halley.

Investors brushed off a slight pullback in New York, where the Dow and S&amp;P 500 came off all-time highs, though the Nasdaq continued to another record.

Eyes on Biden stimulus push

But Mona Mahajan, at Allianz Global Investors, said some selling would be welcomed. "A pullback here could give tactical opportunities to those who were looking to get involved," she told Bloomberg TV.

"It seems like right now the story is just getting started, and the momentum is building behind it, and that story includes the reopening, vaccines, the downward trend now in some of the virus cases we've been seeing, supported by the stimulus talks and the Fed still on the sidelines."

Markets remain upbeat about the chances of Joe Biden pushing through his $1.9 trillion economic rescue package, and while there are warnings that the move -- along with an expected economic recovery -- will fan inflation, Federal Reserve officials were confident it would not be a long-term problem.

Biden said he was "optimistic" a bipartisan agreement could be passed and met top executives from leading companies including Walmart and JPMorgan Chase to shore up support.

However, with Republicans and some Democrats baulking at some parts of the proposal, including more than doubling the minimum wage, the final figure could be slightly lower -- some observers suggesting around $1.4 trillion.

Oil prices were flat, having risen for more than a week to 13-month highs thanks to bets that demand will surge as the world starts to look more normal. 
A drop in US inventories added to evidence that the commodity market is well on the road to recovery.

But Innes added: "That print will not dissuade oil prices from heating up further as Brent goes 'up, up and away', pushing through $61 and keeps climbing, floated higher by vaccine and stimulus balloons. Although I continue to view oil in overbought territory at these current levels and ripe for profit-taking."&nbsp;

Bitcoin was also struggling to push past $50,000 after this week's rally that came on the back of news that Elon Musk's electric carmaker Tesla had invested $1.5 billion in the cryptocurrency. 
The unit was hovering around $46,570, having topped out at $48,215 on Tuesday.

Key figures around 0710 GMT

Tokyo - Nikkei 225: UP 0.2 percent at 29,562.93 (close) 
Hong Kong - Hang Seng: UP 1.8 percent at 30,004.62 
Shanghai - Composite: UP 1.4 percent at 3,655.09 (close) 
Pound/dollar: UP at $1.3820 from $1.3813 at 2230 GMT 
Euro/dollar: UP at $1.2124 from $1.2116 
Euro/pound: UP at 87.73 pence from 87.71 pence 
Dollar/yen: UP at 104.59 yen from 104.58 yen&nbsp; 
Brent North Sea crude: FLAT at $61.11 per barrel 
West Texas Intermediate: DOWN 0.2 percent at $61.00 per barrel 
New York - Dow: DOWN 0.2 percent at $58.24 per barrel 
London - FTSE 100: UP 0.1 percent at 6,531.56 (close) 
&nbsp;

Asian markets advanced again Wednesday as investors ignored a stall in Wall Street's rally, with eyes firmly on the long-term outlook for the global economy as lockdowns are eased and life slowly improves.

Asian markets advanced again Wednesday as investors ignored a stall in Wall Street's rally, with eyes firmly on the long-term outlook for the global economy as lockdowns are eased and life slowly improves. Falling infection rates, growing vaccination programmes and the prospects of a huge spending splurge by the US government within months continue to keep the mood on trading floors upbeat. However, there remain worries that prices may have gone a little too far, which analysts said was capping any surge for now. Declines in new cases, deaths and hospitalisation in major economies including the United States, Britain and Europe are fanning expectations they can begin opening up soon. There is also apparently little concern about the emergence of new strains in parts of the world that some have warned could be more resistant to the vaccines. "There is no evidence that new strains compromise protection against severe illness, and positive signs that consensus is shifting to re-opening once the most vulnerable are protected," said Stephen Innes at Axi. Hong Kong led Wednesday's rally, piling on 1.8 percent above 30,000 thanks to a surge in Tencent and NetEase following news Chinese authorities had given the green light to their most eagerly awaited video games. Shanghai also rose more than one percent as investors welcomed data showing China's factory gate prices rose for the first time in a year in January, indicating the economy was on a recovery track. Gains in Tokyo were capped by news the Japanese government will keep containment measures in place for the time being. Sydney, Seoul, Manila, Jakarta and Bangkok also rose but Mumbai, Singapore and Wellington fell slightly. "Activity in Asia suggests that regional investors are not taking positioning off the boards ahead of the Lunar New Year holidays. If anything, it is precisely the opposite with Asian markets performing well" on Wednesday, said OANDA's Jeffrey Halley. Investors brushed off a slight pullback in New York, where the Dow and S&P 500 came off all-time highs, though the Nasdaq continued to another record. Eyes on Biden stimulus push But Mona Mahajan, at Allianz Global Investors, said some selling would be welcomed. "A pullback here could give tactical opportunities to those who were looking to get involved," she told Bloomberg TV. "It seems like right now the story is just getting started, and the momentum is building behind it, and that story includes the reopening, vaccines, the downward trend now in some of the virus cases we've been seeing, supported by the stimulus talks and the Fed still on the sidelines." Markets remain upbeat about the chances of Joe Biden pushing through his $1.9 trillion economic rescue package, and while there are warnings that the move -- along with an expected economic recovery -- will fan inflation, Federal Reserve officials were confident it would not be a long-term problem. Biden said he was "optimistic" a bipartisan agreement could be passed and met top executives from leading companies including Walmart and JPMorgan Chase to shore up support. However, with Republicans and some Democrats baulking at some parts of the proposal, including more than doubling the minimum wage, the final figure could be slightly lower -- some observers suggesting around $1.4 trillion. Oil prices were flat, having risen for more than a week to 13-month highs thanks to bets that demand will surge as the world starts to look more normal. A drop in US inventories added to evidence that the commodity market is well on the road to recovery. But Innes added: "That print will not dissuade oil prices from heating up further as Brent goes 'up, up and away', pushing through $61 and keeps climbing, floated higher by vaccine and stimulus balloons. Although I continue to view oil in overbought territory at these current levels and ripe for profit-taking." Bitcoin was also struggling to push past $50,000 after this week's rally that came on the back of news that Elon Musk's electric carmaker Tesla had invested $1.5 billion in the cryptocurrency. The unit was hovering around $46,570, having topped out at $48,215 on Tuesday. Key figures around 0710 GMT Tokyo - Nikkei 225: UP 0.2 percent at 29,562.93 (close) Hong Kong - Hang Seng: UP 1.8 percent at 30,004.62 Shanghai - Composite: UP 1.4 percent at 3,655.09 (close) Pound/dollar: UP at $1.3820 from $1.3813 at 2230 GMT Euro/dollar: UP at $1.2124 from $1.2116 Euro/pound: UP at 87.73 pence from 87.71 pence Dollar/yen: UP at 104.59 yen from 104.58 yen Brent North Sea crude: FLAT at $61.11 per barrel West Texas Intermediate: DOWN 0.2 percent at $61.00 per barrel New York - Dow: DOWN 0.2 percent at $58.24 per barrel London - FTSE 100: UP 0.1 percent at 6,531.56 (close)

Asian markets push higher as traders focus on recovery outlook

Gold held steady on Wednesday as bullion found little impetus from weaker equities as the dollar rose to a four-month high on the back of better-than-expected US housing data. 
 
Asian stocks eased early on Wednesday after a record run on Wall Street showed signs of petering out. 
 
Global risk appetite, which has recovered rapidly from the Brexit shock late in June, received a sobering reminder after the International Monetary Fund cut its global growth forecasts for the next two years on Tuesday, citing uncertainty over Britain&#39;s looming exit from the EU. 
 
Spot gold was up 0.1 per cent at $1,332.81 an ounce at 0334 GMT. It closed at $1,331.73 on Tuesday. 
 
US gold was up 0.1 per cent at $1,333.30 an ounce. 
 
&quot;The probability of a US Federal rate hike has increased as of today. Some expectations of a rate hike have come back,&quot; said OCBC Bank analyst Barnabas Gan. 
 
&quot;There are still some headwinds to growth and this may lift safe-haven demand should the implications of Brexit start to unwind.&quot; 
 
Gold, which has risen 25 per cent this year, is highly sensitive to rising rates, which increase the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. 
 
&quot;Technically, it looks like gold&#39;s recent weakness is slowly coming to a halt with a base being formed around $1,325 - $1335,&quot; MKS analyst James Gardiner said in a note. 
 
Spot gold is biased to fall to $1,313 per ounce after completing its consolidation within a small wedge, as per Reuters technical analyst Wang Tao. 
 
The dollar firmed in early Asian trading on Wednesday, as strong US data and rising expectations that the Bank of Japan will muster additional easing steps sent the dollar index to four-month highs.&nbsp; 
 
US housing starts rose more than expected in June as construction activity increased broadly, but downward revisions to the prior months&#39; data pointed to a sector treading water in the second quarter. 
 
Among other precious metals, spot silver, having ended lower in the four previous sessions, was up 0.1 per cent to $19.91 an ounce. 
 
Spot platinum was down 0.4 per cent at $1,084.50, while palladium, which touched an eight-and-half-month high on Tuesday, was down 0.7 per cent at $651.70. 
 
(Reuters)

Gold is highly sensitive to rising rates as it increases the opportunity cost of holding non-yielding assets such as bullion

Gold held steady on Wednesday as bullion found little impetus from weaker equities as the dollar rose to a four-month high on the back of better-than-expected US housing data. Asian stocks eased early on Wednesday after a record run on Wall Street showed signs of petering out. Global risk appetite, which has recovered rapidly from the Brexit shock late in June, received a sobering reminder after the International Monetary Fund cut its global growth forecasts for the next two years on Tuesday, citing uncertainty over Britain's looming exit from the EU. Spot gold was up 0.1 per cent at $1,332.81 an ounce at 0334 GMT. It closed at $1,331.73 on Tuesday. US gold was up 0.1 per cent at $1,333.30 an ounce. "The probability of a US Federal rate hike has increased as of today. Some expectations of a rate hike have come back," said OCBC Bank analyst Barnabas Gan. "There are still some headwinds to growth and this may lift safe-haven demand should the implications of Brexit start to unwind." Gold, which has risen 25 per cent this year, is highly sensitive to rising rates, which increase the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced. "Technically, it looks like gold's recent weakness is slowly coming to a halt with a base being formed around $1,325 - $1335," MKS analyst James Gardiner said in a note. Spot gold is biased to fall to $1,313 per ounce after completing its consolidation within a small wedge, as per Reuters technical analyst Wang Tao. The dollar firmed in early Asian trading on Wednesday, as strong US data and rising expectations that the Bank of Japan will muster additional easing steps sent the dollar index to four-month highs. US housing starts rose more than expected in June as construction activity increased broadly, but downward revisions to the prior months' data pointed to a sector treading water in the second quarter. Among other precious metals, spot silver, having ended lower in the four previous sessions, was up 0.1 per cent to $19.91 an ounce. Spot platinum was down 0.4 per cent at $1,084.50, while palladium, which touched an eight-and-half-month high on Tuesday, was down 0.7 per cent at $651.70. (Reuters)

Gold holds steady as equity rally loses steam

Gold rose on Monday, staying close to more than two-year high hit on Friday, as uncertainty over Britain&#39;s vote to leave the European Union (EU) pushed investors to sell equities and seek safer assets.

Bullion finished Friday up 4.8 per cent, its biggest one-day gain since January 2009 as the British vote sparked sales of riskier assets. Gold is often perceived as a hedge against economic and financial risk.

&quot;The short-term tactical gold buying of highly speculative flows has a history of being not sustainable, but there are also longer-term investors in this rally, who worry about contagion and ramifications in other markets and parts of the world,&quot; Sharps Pixley chief Ross Norman said.

Spot gold rose as much as 1.5 per cent to a session high of $1,335.30 an ounce and was up 0.8 per&nbsp;cent&nbsp;at $1,326.26 by 3:16 p.m. EDT (1916 GMT). It rallied 8 per cent to $1,358.20 at one stage on Friday, the highest price since March 2014.&nbsp;

U.S. gold futures settled up $2.30, or 0.2 per cent, at $1,324.70 per ounce.&nbsp;

Britain&#39;s shock vote to leave the EU&nbsp;roiled global markets for a second day, hammering US&nbsp;and European banks, lifting bond prices and dragging the British Pound to a 31-year low.&nbsp;

&quot;The uncertainty around the timing of negotiations to leave the EU means that not only do investors become more defensive and buy things like gold and the dollar, but it also keeps sterling under pressure and translates into a permanent loss of economic activity at domestic level,&quot; ETF Securities analyst Martin Arnold said.

The British referendum verdict probably means the Fed&#39;s ambitions for two rate rises this year have been placed on hold, analysts and experts said.

Goldman Sachs has raised its gold price forecasts saying Brexit suggested a more sustainable impact on the trajectory of U.S. interest rates.

UBS Wealth Management Research raised its three-month price forecast for gold to $1,275-$1,425 per ounce and 12-month to $1,275, on uncertainties following the UK vote and its expectation for just one Fed rate hike this year.

&quot;Central bank readiness to provide additional monetary support if needed should support gold&#39;s short-term appeal,&quot; UBS said.

Holdings in SPDR Gold Trust GLD, the world&#39;s largest gold-backed exchange-traded fund, jumped 2 per cent on Friday to the highest since July 2013.

Spot silver rose 0.1 per cent&nbsp;at $17.67 per ounce. Platinum was down 0.2 per cent&nbsp;at $979 an ounce and palladium was up 1.7 per cent&nbsp;at $556.10. 
 
(Reuters)

With uncertainty over Britain's vote to leave EU, investors are pushed to sell equities and seek safer assets

Gold rose on Monday, staying close to more than two-year high hit on Friday, as uncertainty over Britain's vote to leave the European Union (EU) pushed investors to sell equities and seek safer assets. Bullion finished Friday up 4.8 per cent, its biggest one-day gain since January 2009 as the British vote sparked sales of riskier assets. Gold is often perceived as a hedge against economic and financial risk. "The short-term tactical gold buying of highly speculative flows has a history of being not sustainable, but there are also longer-term investors in this rally, who worry about contagion and ramifications in other markets and parts of the world," Sharps Pixley chief Ross Norman said. Spot gold rose as much as 1.5 per cent to a session high of $1,335.30 an ounce and was up 0.8 per cent at $1,326.26 by 3:16 p.m. EDT (1916 GMT). It rallied 8 per cent to $1,358.20 at one stage on Friday, the highest price since March 2014. U.S. gold futures settled up $2.30, or 0.2 per cent, at $1,324.70 per ounce. Britain's shock vote to leave the EU roiled global markets for a second day, hammering US and European banks, lifting bond prices and dragging the British Pound to a 31-year low. "The uncertainty around the timing of negotiations to leave the EU means that not only do investors become more defensive and buy things like gold and the dollar, but it also keeps sterling under pressure and translates into a permanent loss of economic activity at domestic level," ETF Securities analyst Martin Arnold said. The British referendum verdict probably means the Fed's ambitions for two rate rises this year have been placed on hold, analysts and experts said. Goldman Sachs has raised its gold price forecasts saying Brexit suggested a more sustainable impact on the trajectory of U.S. interest rates. UBS Wealth Management Research raised its three-month price forecast for gold to $1,275-$1,425 per ounce and 12-month to $1,275, on uncertainties following the UK vote and its expectation for just one Fed rate hike this year. "Central bank readiness to provide additional monetary support if needed should support gold's short-term appeal," UBS said. Holdings in SPDR Gold Trust GLD, the world's largest gold-backed exchange-traded fund, jumped 2 per cent on Friday to the highest since July 2013. Spot silver rose 0.1 per cent at $17.67 per ounce. Platinum was down 0.2 per cent at $979 an ounce and palladium was up 1.7 per cent at $556.10. (Reuters)

Gold gains as Investors seek refuge in bullion market after Brexit vote

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