London - Gold headed for the first three-week advance since February as the debate over whether the UK should exit from the European Union dominated trader discussions.
Metal for immediate delivery added 0.7 percent to $1 287.55 an ounce as of 11:57 a.m. in London, according to Bloomberg generic pricing. Gold hit a two-year high yesterday before erasing gains after the murder of a British lawmaker led to a suspension in Brexit campaigns.
“Regardless of the outcome of the U.K. referendum, there is still considerable economic concern globally,” HSBC Holdings analyst James Steel wrote in a research report late Thursday.
Gold has been on a tear this month on concern that the end of the UK’s membership in the European Union would spark economic instability throughout the region.
Federal Chair Janet Yellen said on Wednesday that the British referendum had been factored into a decision to keep monetary policy unchanged. Publication of UK opinion polls and an International Monetary Fund report were delayed until the weekend as tributes were paid to Labour lawmaker Jo Cox.
Holdings in exchange-traded funds backed by gold rose for 13th day. Assets increased 4.2 metric tons to 1 887 tons as of Thursday, the highest since October 2013, data compiled by Bloomberg show. Silver ETFs extended a record to 20 232 metric tons.
Spot silver rose 1.2 percent to $17.3910 an ounce. It is up 0.3 percent this week for a third consecutive advance. Platinum added 0.8 percent to $978.80 an ounce. Palladium climbed 1.1 percent to $541.05 an ounce.
BLOOMBERG