Gold hovers near 2-week lows

Gold fell sharply on Tuesday as sentiment continued to improve with fears of a Brexit dialing down after an ORB telephone poll showed that the "remain" side is up to 53% in contrast to 46% to the "leave" side.

The yellow metal to a 11-day low of $1,264.50 an ounce and finishes the day near lows, about 2% lower, further retreating from the year high posted last week.

Gold technical view

“Daily chart shows that the technical indicators have extended their declines within positive territory, and with sharp bearish slopes, almost ready to cross their mid-lines towards the downside, indicating an increasing bearish potential. In the same chart, the 20 DMA keeps heading higher, now around 1,259.80, which means an extension below this last should confirm a continued decline, probably towards the 100 DMA at 1,250.40,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is now below a bearish 20 SMA, whilst the technical indicators head south near oversold readings, also supporting some further slides for the upcoming sessions.”

Support levels: 1,265.40 1,259.80 1,250.40. Resistance levels: 1,278.80 1,290.70 1,303.70.