New Delhi: Supported by weaker Asian stocks, gold nearly hit its four-week high early Monday as the investors turned towards safe haven assets ahead of this week’s central bank meetings and Britain’s June 23 referendum on its European Union membership.
Spot gold was nearly flat at USD 1,273.36 an ounce, whereas the price of gold in the US was up 0.1 percent at USD 1,276.50.
Often perceived as an insurance against economic and financial concerns, gold had risen five percent in June and 20 percent in 2016 so far.
Asian shares and metals skidded in early trade on Monday and the perceived safe haven yen rose ahead of the US Federal Reserve, Bank of England, Swiss National Bank and the Bank of Japan meet this week.
All are expected to hold monetary policy steady against a backdrop of caution about the global economic outlook as well as the impact about a possible Brexit.
Hedge funds and money managers raised their net long position in COMEX gold contracts in the week to June 7 and cut their bullish stance in silver, US Commodity Futures Trading Commission data showed on Friday.
Gold discounts in India expanded to their widest in nearly 3-1/2 months this week amid lack luster demand elsewhere in Asia, with bullion’s recent rally dampening retail demand.