Gold edges down as calm returns after Brexit shock

Gold fell on Thursday after rising as much as 1% during the previous session, with safe-haven demand easing as the shock of Britain's decision to leave the European Union began to fade.

Asian stock markets rose on Thursday, tracking an overnight rally on Wall Street, while the dollar remained near a 3-1/2 month high against a basket of currencies as global markets regained a semblance of calm.

Spot gold had fallen 0.3% to $1,314.30 an ounce by 0357 GMT. It closed about 0.5% higher on Wednesday, rising for three out of four sessions.

US gold was down 0.7% at $1,317.40.

Silver, which climbed around 3%to reach a 1-1/2 year high on Wednesday, was nearly flat at $18.27 an ounce.

"It seems that the market has now turned away from the Brexit saga for the moment, given that there are no major developments in terms of what it (Britain) plans to do next," said Vyanne Lai, analyst, National Australia Bank.

"The general feeling is that the US Federal Reserve might not be in a rush to increase interest rates in the coming months," Lai said.

Credit Suisse on Wednesday raised its short-term and long-term price forecasts for gold and silver, citing prolonged macro and political uncertainty following the Brexit vote.

"We forecast the gold price to increase through 2016 and believe the $1,500/oz mark could be tested by late 2016 or early 2017 as the macro implications of the Brexit vote are clarified, and the Nov. 8 US election weighs on sentiment," the bank said.

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.28% to 950.05 tonnes on Wednesday, the highest since July 2013.

"It is simply too uncertain an environment to be taking a short-term view on gold right now (apart from perhaps day trading it) and so we would wait for the dust to settle before doing so," INTL FCStone analyst Edward Meir said in a note.

Among other precious metals, platinum rose 0.3% to $1005.70 an ounce and palladium was up nearly 1%at $591.