Gold holds near five-week high as Brexit concerns spur demand

[SINGAPORE] Gold held near its highest level in more than five weeks as risk aversion weighs on financial markets ahead of Britain's vote on exiting the European Union, sending investors to haven assets.

Bullion for immediate delivery was down 0.2 per cent at US$1,283.51 an ounce at 9:19 am in Singapore, according to Bloomberg generic pricing. The metal touched US$1,289.97 on Tuesday, the highest intraday level since May 6, capping five straight days of gains. It's up 21 per cent this year.

Gold is benefiting from the climate of uncertainty in the run up to Britain's June 23 referendum, which has sparked a global stock selloff. The metal may hit US$1,350 in the days and weeks following a vote to leave the EU, Georgette Boele, a currency and precious metals analyst at ABN Amro Group NV, said in a June 14 report.

Central bank meetings in the US and Japan on monetary policy this week will also be closely watched.

BLOOMBERG