Gold prices fell slightly, stepping back from the two-year high, and dropped below $ 1,350 an ounce. The pressure on the precious metal was a strengthening US dollar. However, the fall in prices constrains the continuing uncertainty regarding the effects of Brexit.
The referendum on Britain's membership of the EU has caused turmoil in the financial markets and raised the gold price to its highest level since the beginning of 2014. While concerns about global economic growth and monetary policy support gold, the up move can not continue today.
British referendum results also increased the pressure on central banks to ease their monetary policy. Recently, the Bank of England raised the possibility of further stimulus in the coming months, and today decided to reduce the capital requirements for banks in the UK, which would allow British banks to issue more loans to companies and households totaling 150 billion pounds and ensure adequate levels of lending to the economy. Many investors also expect policy easing from the ECB, the Bank of Japan and the People's Bank of China. In addition, market participants believe that the Fed will refrain from raising interest rates this year instead of the previously planned hikes. Recall, the gradual increase of the rate shall be less of a threat to the gold price.
"Currently, there is some profit-taking in gold, - said an analyst at Mitsubishi Jonathan Butler -. Long positions in gold reached record highs, and many investors are clearly in the profits now with gold price about $ 100 higher than in the middle of last month, however.. , heightened risk aversion is likely to continue to support the price. "
The cost of the August gold futures on the COMEX fell to $ 1345.6 per ounce.