London-listed miners lose out as gold demand dampens

Jessica Morris
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An employee puts a golden bar to a furna
Gold suffered as global markets shook off Brexit woes (Source: Getty)

Gold miners were some of the biggest losers in London today, as demand for the precious metal waned amid assurances global policymakers would do all they could to help the economy.

Fresnillo closed down 1.64 per cent to 1,801p per, while its peer Rangold Resources slipped 3.39 per cent to 8,550p and Centamin slumped 4.72 per cent to 151.3p.

Read more: Gold "on fire" as UK shocks markets with Leave vote

They tracked similar losses in gold prices due to increased investor confidence ahead of central bank meetings in the US and Japan. Spot gold careered lower for the second day in a row, and was last down 0.21 per cent to $1,319.89.

Gold miners' stocks had been a favourite with investors sheltering from widespread panic after the Brexit vote. But as the volatility subsequently subsided, so too has demand for the precious metal. And this weekend, the world's major economies promised at a G20 meeting to use all monetary policy tools available to lift growth.

Read more: Shares in gold miners are soaring this year

"We could see some falling of gold prices with markets thinking things are not as bad as expected post-Brexit and the good performance of key US economic indicators," Jiang Shu, chief analyst at Shandong Gold Group, told Reuters.

Shu added that the US and Japanese central banks are expected to deliver some fairly positive comments about the economy when they take centre stage later this week, shoring up confidence following Britain's shock vote to leave the EU.

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