London: Gold declined on signs that policymakers will seek to minimise the impact on global growth from the U.K.’s decision to leave the European Union, increasing appetite for risk.
Bullion for immediate delivery fell as much as 0.4 per cent to $1,314.18 an ounce and traded at $1,317.35 by 9:35am in Singapore, according to Bloomberg generic pricing. The metal jumped to the highest level in more than two years on June 24 after the Brexit vote, and is heading for a second quarterly gain.
Gold rallied 24 per cent this year as demand for haven assets surged and traders factored in bets that the Federal Reserve won’t raise interest rates this year. Asian shares rose for a second day following the steepest two-day advance in global stocks since August as central banks around the world signalled a readiness to act if required.
“Markets are breathing a sigh of ‘belief’ today, with risk assets recovering the majority of the losses that last week’s shock referendum result caused,” Jordan Eliseo, Sydney-based chief economist at trader Australian Bullion Co., said by email. “It’s no surprise to see the gold price take a breather in this environment, with the metal still up over $50 in the last week alone.”
