Gold flat lined below 38.2% Fibo in Asia

Gold finds no takers in Asia following yesterday’s sell-off, leaving the prices comatose just below $1271.21 (38.2% Fibo of May 30 low - June 16 high).

Recovers from ten-day low

The metal clocked a ten-day low of $1264.53/Oz  yesterday as falling Brexit bets pushed up risk assets and curbed demand for the safe haven assets like gold. There seems to be a consensus in the markets that ‘remain’ camp would come out victorious in Thursday’s EU referendum.

Yellen testimony failed to offer any surprises, although December rate hike bets as represented by CME data have moved back above 50%. The data docket is empty today; hence the metal is at the mercy of broader market sentiment.

Gold Technical Levels

The immediate hurdle is noted at $1271.21 (38.2% Fibo of May 30 low - June 16 high), above which metal could have a go at $1280 (5-DMA + 10-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 $1264.53 (daily low) would expose support at $1257 (50% Fibo + 50-DMA) and $1243 (100-DMA).