Gold falls to 2-week lows ahead of Brexit vote

Gold  fell to fresh 2-week lows on Wednesday as investors prepare for the UK referendum on EU membership on Thursday.

Spot closed the day around $1,264.20 an ounce, not far from the fresh 2-week low set at $1,261.10.

The commodity reached a year-to-date high last week around $1,315/oz after the Fed decided to leave rates unchanged. The upward move was fueled by a strong risk-averse environment ahead of the UK referendum. This latter suffered a sudden change late last week when polls began to show that the "remain" side was taking the lead, although fears resumed as the date looms.

Gold technical perspective

“The daily chart shows an increasing bearish potential, as the price is struggling around a bullish 20 SMA, whilst the technical indicators head lower, right above their mid-lines,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the metal is biased lower, as the price has extended below a now bearish 20 SMA, whilst the technical indicators head sharply lower within negative territory, supporting further declines for this Thursday.”

Support levels: 1,261.10 1,250.40 1,242.50. Resistance levels: 1,269.90 1,278.80 1,290.70.