LONDON: Gold eased from the previous session’s six-week high ahead of a Federal Reserve policy decision later on Wednesday, though concerns over an upcoming vote on Britain’s membership of the European Union underpinned prices.

The metal has rallied for the last five sessions as assets seen as higher risk, such as shares, saw heavy losses on the back of Brexit fears, while yields on safe-haven German Bunds fell below zero for the first time.

Gold has taken a breather, however, as dealers await the Fed meeting. The metal is highly sensitive to US interest rates, increases in which lift the opportunity cost of holding non-yielding gold, while boosting the dollar, in which it is priced.

Spot gold was down 0.3 per cent at $1,282.60 an ounce at 1340 GMT, while US gold futures for August delivery were down $2.40 an ounce at $1,285.70.

Published in Dawn, June 16th, 2016

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