Gold inter-markets: under pressure as ‘Brexit’ fades

The demand for the precious metal remains subdued at the beginning of the week, as the likeliness of a ‘Brexit’ scenario seems to have lost impetus following latest poll results published over the weekend in the UK.

Even the sharp sell off in the greenback, when tracked by the US Dollar Index, and despite the good performance of US yields across the curve, is failing to spark the slightest attempt of recovery in bullion, as its safe haven appeal continues to suffer the increasing wave of GBP-led risk appetite.

Volatility gauged by VIX is flat lining around daily lows, reflecting the risk-orientated session as well. The Fed Funds Futures contracts keep the leg lower in line with USD performance, showing the probability of a rate hike by the Fed at its meeting in July is a meagre 7.2%.