Gold Higher On Global Worries Over Brexit, US Fed Meet

Gold continues to rise in the bullion market, tracking a firm overseas trend as rising worries over the possibility of Britain leaving the EU was now very high.

Gold sentiments were also high on speculation that the Federal Reserve will refrain from increasing US interest rates this time. The Federal Reserve is to meet on Tuesday for two days to discuss its policy and interest rates depending on the economic development.

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At the MCX, Gold futures for August 2016 contract was seen trading at Rs 30,302 per 10 gram, up by 0.72 per cent at 2.00 pm IST after opening at Rs 30,094. It touched the intra-day high of Rs 30,378.

Gold is considered as safe haven metal and hedge against economic turmoil or political uncertainties . International spot gold rose to four week high amid concerns over Brexit and was seen trading at $1,281 an ounce.

Indian and global equity markets also plunged over worries of a possible fears of a gradual disintegration of the EU, should Britain leave the EU. The voting to stay or leave will take place on June 23.

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