Gold extends gains on U.S. equities weakness

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Monday as U.S. equities weakened for the fourth day.

The most active gold contract for August delivery rose 11 U.S. dollars, or 0.86 percent, to settle at 1,286.90 dollars per ounce.

The U.S. Dow Jones Industrial Average fell for the fourth day in a row as U.S. investors feared about a potential Brexit as the United Kingdom is to hold a referendum on whether to stay in the bloc. The potential for a Brexit has caused volatility in the market, driving investors to gold as a safe haven, analysts noted.

Investors are waiting for the release of the retail sales on Tuesday, the producer price index report, industrial production, the results of the Federal Open Market Committee meeting on Wednesday, the consumer price index, jobless claims, and Philadelphia Fed Business Outlook Survey on Thursday, and housing starts on Friday.

With the upcoming June Federal Open Market Committee (FOMC) meeting, traders believed that the Fed will delay the June interest rate increase.

According to the CMEGroup' s Fedwatch tool, the current implied probability of a hike from 0.50 to 0.75 is at 3 percent for the June meeting, 18 percent at the July 2016 meeting, and 33 percent at the September 2016 meeting.

Silver for July delivery added 11.30 cents, or 0.65 percent, to close at 17.443 dollars per ounce. Platinum for July delivery rose 1.10 dollars, or 0.11 percent, to close at 995.30 dollars per ounce. Endit