Gold stalls-3-day slide, firmer ahead of EU vote

Gold prices finally brought an end to its three consecutive session of losses and staged a minor-rebound in Asia from two-week lows on flight to safety ahead of the Brexit polls.

Gold trades below $ 1270 mark

Currently, gold trades 0.08% higher at 1264.50, having posted day’s high at 1267 and day’s low at 1261.01. Gold once gain found support at 1261 levels and attempted a minor-recovery this Thursday as investors’ sought safety assets to protect their wealth heading into the EU referendum, which begins shortly.

Markets fret over the outcome of the UK vote on the EU’s membership, with a Brexit win likely to trigger a massive risk-aversion wave across the markets and bolster the demand for safe-havens such as the yen, gold, etc. Hence, traders remain on the defensive and cover their gold shorts ahead of the key risk event.

Gold Technical Levels                                   

The metal has an immediate resistance at 1270.65 (Jun 22 high) and 1275 (psychological levels/ previous top). Meanwhile, the support stands at 1257.25 (50-DMA) below which doors could open for 1250 (round number).