Gold held a two-day slump on speculation that Britain's voters will probably vote to stay in the European Union in a referendum on Thursday, undercutting demand for haven assets.
Bullion for immediate delivery traded at US$1,268.80 an ounce at 8:02 am in Singapore from US$1,268.12 on Tuesday, which capped a two-day, 2.4 per cent loss, according to Bloomberg generic pricing.
Gold has retreated this week as bookmakers have suggested the "Remain" camp is in a strong position even as different polls have put each side ahead. That's pared the metal's advance this year, which has been driven by the US Federal Reserve holding fire on rate rises.
Fed Chair Janet Yellen on Tuesday laid out a cautious view of the economy in testimony before lawmakers.
Gold prices closed the U.S. day session solidly lower Tuesday, as “risk-on” trader and investor attitudes are dominating the marketplace so far this week. More profit taking from the shorter-term futures traders was also featured after prices past week hit a two-year high. August Comex gold was last down $20.40 an ounce at $1,271.70. July Comex silver was last down $0.214 at $17.30 an ounce.
Technically, August gold futures prices closed nearer the session low today. The gold bulls still have the overall near-term technical advantage but are now fading. Gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,250.00. First resistance is seen at $1,280.00 and then at $1,290.00. First support is seen at today’s low of $1,268.10 and then at $1,260.00. Wyckoff’s Market Rating: 7.0
Reference: Business Times, Kitco
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