Gold climbs after biggest drop in month as Brexit polls differ

[SINGAPORE] Gold advanced amid simmering anxiety over the outcome of a UK referendum on European Union membership, with separate polls showing leads for both sides.

Bullion for immediate delivery rose 0.2 per cent to US$1,291.86 at 8:36 am in Singapore, according to Bloomberg generic pricing. The metal fell as much as 1.6 per cent on Monday, the biggest intraday drop in about a month, as investors bet the referendum was swinging in favor of "Remain", reducing haven demand.

Governments and investors around the world are watching the referendum amid concern that a so-called Brexit would spark turmoil across markets. Gold rallied to the highest in almost two years last week as US Federal Reserve Chair Janet Yellen said the British vote was a factor considered by officials as they decided to keep interest rates unchanged.

A YouGov poll for the Times newspaper published late on Monday showed "Leave" at 44 per cent and 42 per cent for "Remain", while a survey by ORB for the Daily Telegraph had "Remain" at 53 per cent and "Leave" at 46 per cent among those certain to vote.

BLOOMBERG