Gold up on market uncertainty

Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as the market remained uncertain as to the long-term and medium-term impact of the UK's exit of the European Union.

The most active gold contract for October delivery rose 9 U.S. dollars, or 0.68 percent, to settle at 1,326.90 dollars per ounce.

Traders cautiously re-entered the U.S. equities market on Wednesday, leading the U.S. Dow Jones Industrial Average (DJIA) to extend its rise from Tuesday, with the DJIA adding 267 points, or 1.53 percent as of 18:30 GMT.

However ,analysts noted, this has not recovered the losses in the previous sessions following the UK's vote to leave the European Union last week.

The referendum has been dubbed the "Brexit" and is largely seen as a highly destabilizing move which has caused volatility in the market, driving investors to gold as a safe haven.

Gold was given additional support as the U.S. Dollar Index fell by 0.35 percent to 95.73 as of 18:30 GMT. The index is a measure of the dollar against a basket of major currencies. Gold and the dollar typically move in opposite directions.

The U.S. Department of Commerce said on Wednesday that personal income and consumer spending increased 0.2 percent, and 0.4 percent, respectively, in May.

Both figures, in line with market expectations, is likely to convince investors that despite the Brexit, the U.S. economy remains on track in the short term, preventing the precious metal from rising further, analysts said.

Silver for September delivery rose 51.8 cents, or 2.90 percent, to close at 18.407 dollars per ounce. Platinum for October delivery added 32.9 dollars, or 3.36 percent, to close at 1,013.50 dollars per ounce. Endit