Gold prices on Monday hit levels not seen in weeks, as investors sought safety in the precious metal, prompted by nervousness around the Brexit referendum and a pair of high-profile central bank meetings.
Prices rose as investors piled into the yen, with the dollar USDJPY, -0.57% off about 1% against the Japanese currency. A stronger dollar makes assets pegged to the greenback, such as gold, less attractive to buyers purchasing with other monetary units.
Worries that a U.K. referendum in European Union membership, set for June 23, will result in a British exit from the bloc were churning afresh on Monday. Stocks in Europe SXXP, -1.29% dropped to two-month lows. In Asia, the sea of red was led by a 3.5% drop for the Nikkei 225 index NIK, -3.51%
The Federal Open Market Committee and Bank of Japan both meet this week, though the Federal Reserve isn't expected to announce any change in key policy in its statement Wednesday.
Analysts at Commerzbank said in a note to clients on Monday that gold has "recouped all of the losses it had suffered following the publication of the minutes of the last meeting of the U.S. Federal Reserve." The analysts said a further decline in government bond yields is also helping support gold.
Gold for August delivery rose $11, or 0.9%, to $1,286.90 an ounce, on the heels of booking its second-weekly gain in a row last week.