Gold on the front foot ahead of Brexit polls

Gold prices are attempting gains in Asia as caution is seeping into the financial markets ahead of the Brexit polls.

Eyeing 38.2% Fibo

The metal regained bid tone after having clocked a low of $1261 levels and now appears on track to test $1271.22 (38.2% of May 30 low – June 16 high). Prices currently hover around $1266/Oz levels.

Polls open at 6 GMT and the caution ahead of the same could push traditional safe haven assets like gold, treasuries and Yen higher. Macroeconomic data releases due in Europe – preliminary PMI readings and initial jobless claims may receive little attention amid Brexit related news flow.

Gold Technical Levels

The immediate hurdle is noted at $1271.22 (38.2% Fibo of May 30 low - June 16 high), above which metal could have a go at $1277 (5-DMA). A violation there would expose $1288.19 (23.6% of May 30 low – Jun 16 high). On the other hand, breakdown of support at $1261 (daily low) would expose support at $1257 (50% Fibo + 50-DMA) and $1244 (100-DMA).