Gold edges lower ahead of Brexit vote results

Gold spent most of the day oscillating in a wide range to finally close the day down, near 2-week lows sub $1,260 an ounce.

The yellow metal staged a bounce during the New York session amid Brexit anxiety, but then turned back lower. It was last trading around $1,258/oz, 0.55% lower on the day, as investors await the referendum outcome.

Gold technical view

“From a technical point of view, the downward risk persists, but looks now limited, as the technical indicators have lost their bearish momentum and turned horizontal above their mid-lines, whilst the price stands a few cents below its 20 SMA,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA heads south above the current level, capping the upside now around 1,271.40, whilst the technical indicators lack clear directional strength, but hold near oversold levels, supporting some further slides on a break below the daily low, and with scope to extend down to the 1,242.50 region, should risk appetite persist.”

Support levels: 1,257.45 1,248.80 1,242.50 Resistance levels: 1,269.90 1,278.80 1,290.70.