LONDON: Gold rebounded to a fresh three-week high on Friday, as investor risk aversion lifted appetite for the metal, putting it on track for a second straight weekly rise.

Prices are likely to be bolstered in the next two weeks by nervousness over Britain’s June 23 referendum on its EU membership, analysts said.

Spot gold rose as high as $1,277.70 an ounce, its highest since May 18, and was up 0.6pc at $1,275.57 an ounce by 1424 GMT.

Spot silver touched a 3-1/2-week high earlier in the session and was on track for its biggest weekly gain for one year, up 5.7pc. It was up 0.2pc at $17.23 an ounce.

Holdings in SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.7pc to 887.38 tonnes on Thursday, the highest level since October 2013.

Among other precious metals, platinum fell 0.4pc to $995.75 and palladium was down 0.9pc at $555.97.

Published in Dawn, June 11th, 2016