Gold Falls To Two-Week Low After BOE Hold Rates Steady

Gold fell 1.5 percent on Thursday as global equities stayed in positive territory after the Bank of England (BoE) surprised investors by leaving interest rates unchanged.

 

The BoE said it was likely to deliver stimulus to the economy in three weeks, once it assessed how Britain's vote to leave the European Union has affected the economy.


Spot gold fell as much as 1.5 % to $1,321.79 an ounce, the lowest since July 1, and was down 1.3 % at $1,325.36 by 1158 GMT.Spot gold is likely to retest support at $1,328 per ounce, a break below which could cause a loss to the next support at $1,313, according to Reuters technical analyst Wang Tao. 


Gold touched a two-year high of $1,374.91 last week, after Britain voted to leave the European Union, as worried investors started putting their cash into safe-haven assets. 


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