Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold gained 1.5% to close near $1,359, its highest finish in 27 months, as fresh worries over Brexit drove safe-haven inflows. Silver added 1.6% to last week's 10.1% rise, closing at a 23-month high of $19.91.

Two major UK property funds, Aviva and Standard Life, froze redemptions after record numbers of customers withdrew capital, apparently in response to Brexit. The political and financial uncertainty surrounding Britain's unprecedented decision to exit the EU has raised the risk of recession in the UK, and has already diminished its economy from fifth to sixth largest in the world.

The British pound fell to a new post-Brexit low, dropping to its weakest against the dollar since 1985. Meanwhile, the ICE Dollar Index, measuring the greenback against a basket of major rivals, rose 0.6% as traders sought safety.

A stronger dollar typically weighs on gold and other commodities denominated in it for international trade. But in the current risk-off environment, the dollar and precious metals are rising together as investors scramble for shelter from Brexit fallout.

U.S treasury bonds also rallied, driving yields to all-time lows, on what's being called an "insatiable" demand for safety in the U.S and abroad. Equity markets fell back, with the Dow dropping 0.6% and the Global Dow 1.2%. Oil prices tumbled 5% for the biggest one-day drop in five months on fears that Brexit will slow economic growth.

The other precious metals were mixed, with platinum adding 1.9% while palladium lost 0.5%.

At the Comex close: August gold gained $19.70 to $1,358.70; September silver picked up 32 cents to $19.91; October platinum added $19.80 to $1,076.90; and September palladium dropped $3 to $602.65 an ounce.