Gold inched higher early on Tuesday as the dollar weakened, even as some opinion polls indicated Britain could be more likely to opt to remain in the European Union in a referendum later this week.

FUNDAMENTALS

  • Spot gold had risen 0.2 percent to $1,292.0 an ounce by 0054 GMT. Bullion fell 0.7 percent on Monday, touching a low of $1,277.34.
  • U.S. gold was up 0.2 percent at $1,294.70
  • Two opinion polls on Monday suggested support for Britain staying in the European Union had recovered some ground following the murder of a pro-EU lawmaker, but a third poll found support for a "Brexit" ahead by a whisker.
  • A vote on June 23 by Britain to leave the 28-member EU, dubbed "Brexit," could tip Europe back into recession, putting more pressure on the global economy.
  • The British pound held near three-week highs against the dollar and euro on Tuesday, a day after it had made its biggest daily gains since late 2008, while the dollar index stood near a one-month low of 93.425 hit earlier this month.
  • George Soros, the billionaire who earned fame by betting against the pound in 1992, said Brexit would trigger a bigger and more disruptive sterling devaluation than the fall on Black Wednesday.
  • Brexit could have "moderate direct effects" on the U.S. economy, but probably does not pose big financial risks, Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, said.
  • Confidence at Japanese manufacturers inched up in June from the prior month's three-year low and is seen rising only slightly ahead, a Reuters poll found, reflecting worries about the yen's rise as Britain decides whether or not to quit the EU.
  • Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.10 percent to 908.77 tonnes on Monday, the highest since September 2013.
  • Russia's gold reserves increased to 47.6 million troy ounces as of the start of June from 47.5 million ounces a month earlier, the central bank said on Monday.
  • India is seeking the participation of Rio Tinto and Anglo American's De Beers to explore for diamonds and gold, part of Prime Minister Narendra Modi's ambition to make the country a major mineral producer, the mines secretary said.