Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold rose 0.2%, adding to Friday's 4.7% surge to close near $1,325, as investors continued to shun risk in favor of safe havens in the aftermath of Britain's shocking vote to exit the EU.

Turmoil reigned in global equity markets for a second day with the Global Dow extending Friday's 6% sell-off by dumping another 2.5%. The Dow and S&P 500 tumbled 1.6% and 1.9%, respectively, for their worst two-day slide in ten months.

The UK pound continued its freefall, dropping another 3.5% against the dollar after Friday's 8.1% plunge, the biggest one-day loss on record. The euro and other European currencies also recorded sharp declines on fears of financial contagion sweeping the continent.

Rating agency Standard & Poor's cut Britain's credit rating by two notches and warned of further downgrades, saying the Brexit will lead to a less predictable, stable, and effective policy framework in the UK."

Gold's gains were capped by a stronger dollar, which gained 0.6% against a basket of rivals and has risen nearly 3% over two sessions as global investors scramble for cover. A rising dollar typically weighs on gold and other commodities denominated in it for international trade by making them more expensive overseas.

Further supporting gold prices, China's gold imports from Hong Kong jumped 68% in May, to the highest amount since last December.

The other precious metals were mixed, with silver and platinum slipping 0.3% and 0.8%, respectively, while palladium gained 2%.

At the Comex close: August gold rose $2.30 to $1,324.70; September silver slid 5 cents to $17.79; July platinum dropped $7.90 to $979.20; September palladium picked up $10.95 to $557.40 an ounce.