Gold attempts bounce from 2-week lows, Brexit looms

The yellow metal stages a tepid-recovery from ahead of 1260 barrier in the European trades, as broad USD selling rescues the gold bulls from Bremain-led sell-off.

Gold reverts to $ 1270 mark?

Currently, gold trades -0.21% lower at 1266, having posted day’s high at 1270.65 and day’s low at 1261.16. Gold fell sharply this Wednesday as sentiment improved on increasing expectations that the Remain camp will emerge the winners following UK’s vote on the EU’s membership tomorrow.

However, fresh bids emerged well ahead of 50-DMA located at 1256 levels and the prices embarked upon a minor-recovery mode as underlying weakness in the greenback in wake of Fed Yellen’s cautious remarks, provided the much-needed impetus to the bullion.

Going forward, the precious metal may witness wild moves as we head towards Fed Yellen’s testimony and Brexit vote in the upcoming hours.

Gold Technical Levels                                   

The metal has an immediate resistance at 1270.65 (daily high) and 1275 (psychological levels/ previous top). Meanwhile, the support stands at 1256 (50-DMA) below which doors could open for 1250 (round number).