Gold extends gains on fallout of Brexit

Gold futures on the COMEX division of the New York Mercantile Exchange extended gains on Monday as the markets continued to grasp the UK's exit from the European Union (EU).

The most active gold contract for August delivery gained 2.30 U.S. dollars, or 0.17 percent, to settle at 1,324.70 dollars per ounce.

Fear dominated the U.S. equities markets on Monday, triggering a rush to the precious metal as a safe haven after UK voted to leave the EU the previous week. The referendum has been dubbed the "Brexit" by investors and is largely seen as a highly destabilizing move.

Friday and Monday showed an extensive fall in U.S. equities, which also gave extensive support to the precious metal. The U.S. Dow Jones Industrial Average fell by 248 points, or 1.43 percent as of 17:15 GMT.

However, gold was prevented from rising further as the U.S. Dollar Index rose against most major currencies on Monday.

Although the U.S. gross domestic product report is due on Tuesday and personal income and outlays is due on Wednesday, analysts believe that the market will be dominated by the Brexit vote in the coming week, and investor fear will add additional support to the precious metal.

Analysts noted that if conditions worsen, the precious metal will likely increase in value due to its safe haven properties.

Silver for July delivery lost 4.50 cents, or 0.25 percent, to close at 17.744 dollars per ounce. Platinum for July delivery fell 7.90 dollars, or 0.80 percent, to close at 979.20 dollars per ounce. Endit