Investing.com - Gold prices dipped in Asia on Tuesday as investors turned cautious after recent gains linked to expectations of steady interest rates in the U.S. and an uncertain outlook for Britain remaining in the European Union.
On the Comex division of the New York Mercantile Exchange, Gold for August delivery eased 0.11% to $1,285.45 a troy ounce.
Silver futures for July delivery fell 0.05% to $17.435 a troy ounce, while copper futures for July delivery gained 0.24% to $2.057 a pound.
Overnight, gold surged to fresh 1-month highs on Monday, as investors continued to pile into safe-haven assets amid mounting Brexit concerns, as well as dismal economic indicators in both China and Japan.
Gold has closed higher in five consecutive sessions and seven of the last nine.
Investors continued to closely monitor Brexit polls in the U.K. after a YouGov poll showed that the "Leave," campaign overtook the "Stay" campaign in the latest survey, reversing a narrow lead from a poll last week.
It came after another survey taken by research firm ORB found that 55% of British voters support leaving the European Union, while 45% are in favor of staying in the European bloc.
A host of major world leaders including U.K. prime minister David Cameron, Germany chancellor Angela Merkel and International Monetary Fund managing director Christine Lagarde have issued stark warnings on the ramifications a British departure from the EU could have on the global economy at large.
In China, the Shanghai Composite Index tumbled more than 3% to 2,833.07, amid further signals of weak investment growth in the world's second-largest economy.
Last month, fixed asset investment in China grew by 9.6% on an annual basis, sharply below April's gains of 10.5% and consensus forecasts of 10.5%. It also marked the slowest level of growth over a four-month period since 2000. China is the world's largest producer of gold and is the world's second-largest consumer behind India.
Elsewhere, stocks on the Nikkei 225 plunged 3.51% to 16,019.18, after Fitch slashed Japan's credit rating outlook to negative on Monday. Fitch, one of the big three global credit rating agencies, slashed Japan's outlook but affirmed its rating at a current level of A, citing prime minister Shinzo Abe's decision to delay a hike in the nation's consumption tax until 2017.
Commodity traders continue to await a highly-anticipated interest rate decision by the Federal Reserve on Wednesday afternoon. While the Federal Open Market Committee (FOMC) is not expected to raise short-term interest rates at the meeting, Fed chair Janet Yellen could provide clues on whether the U.S. central bank could lift rates before the end of the fall. The FOMC has left the target range of its benchmark Federal Funds Rate steady at a level between 0.25 and 0.50% at each of its first three meetings this year.
Investors who are bullish on gold are in favor of a gradual tightening of monetary policy by the Fed. Gold, which is not attached to interest rates, struggles to compete with high-yield bearing assets in rising rate environments.