KONTAK PERKASA FUTURES – Gold climbed to the highest in four weeks as uncertainty mounts over whether Britain will exit the European Union and traders price in zero odds the Federal Reserve will raise U.S. interest rates this week.
Polls showed the outcome of the Brexit referendum was too close to call, boosting the metal’s appeal as a haven asset. Fed futures data show no chance the U.S. central bank will raise interest rates Wednesday, down from a 24 percent likelihood at the end of May, after U.S. non-farm payroll data came in weaker than expected.
Gold is up 21 percent in 2016 as a global economic slowdown led by cooling of growth in China, as well as dialed-back expectations that the Fed will raise rates, boosted the metal’s appeal as a store of value.
Gold futures for August delivery rose 0.9 percent to settle at $1,286.90 an ounce at 1:37 p.m. on the Comex in New York, a fourth straight gain and the longest stretch in more than a month. Earlier the price touched $1,290.30, the highest since May 16.
Silver futures for July delivery rose 0.7 percent to $17.443 an ounce on the Comex.
Source : bloomberg.com