Gold sinks most so far in June on signs UK turning away from Brexit

LONDON: Gold today tumbled by the most in almost a month as polls that showed voters tilting toward remaining in the European Union cut demand for haven investments.

Gold lost 1.4 per cent to $1,280.47 an ounce, the biggest intra-day drop since May 24. Silver also traded 0.6 per cent lower at $17.39 an ounce.

Gold has been highly correlated with expectations of the outcome of a UK referendum on EU membership, with a greater probability of the UK staying in the union negative for the metal.

This perception was strengthened last week when US Federal Reserve Chair Janet Yellen said the vote was factored into a decision to keep rates unchanged.

Meanwhile, the pound rallied on Monday, gaining as much as 2.2 per cent against the dollar, the biggest intra-day move since March 2015.