(MENAFN- ProactiveInvestors - UK) Gold neared two-week lows on Monday as it sunk to its third day of losses this week ahead of tomorrow''s highly anticipated Brexit vote.
Polls have been mixed on the likely outcome of the referendum, although recent data suggests that the Remain campaign might have just edged it.
This perceived stability has dulled demand for gold, which until recently had rallied off the back of polls which suggested a Brexit was more likely.
Only last week the metal broke past the US$1,300 barrier to reach its highest levels for almost two years.
''Remain victory already priced into gold''
A vote to leave the EU tomorrow would likely see some volatility in global markets, increasing the demand for ''safe haven'' gold.
A vote to remain would have the opposite, more stabilising effect and could see the price of gold fall, although Marex Spectron weren''t convinced that was the case.
"I think there is a lot more room on the upside [for gold] should there be a leave vote, rather than the downside on a remain vote,'' it said in a note today.
If the former, gold has the potential to rally as far as 1350 in the medium term I would think. If the latter, then [we] really don''t see prices dropping much more than 20-25 dollars as a quick knee jerk reaction.''
Naeem Aslam, chief market analyst at ThinkForex echoed those comments that gold stands to gain more than it can lose from tomorrow''s vote.
''Brexit is still the biggest threat. Markets are already celebrating a premature victory [for Remain] and that is a major concern,'' Aslam said.
''A remain vote is highly priced into gold now. The Leave vote is the one we have to watch out for because that is not priced in.''
Shortly before UK market close, gold was down US$3 to US$1,265, silver was up 1c to US$17.27, and platinum was up US$2 to US$978.
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