Gold clocks six-day high amid FX volatility and rising Brexit fears

Gold prices advanced to a six-day high of $1243.25 levels amid JPY driven FX market volatility and rising Brexit fears.

Bounced off 50-DMA

Prices flirted with 50-DMA level for four trading session before bouncing off the same today. The FX markets have been caught off guard by Yen’s sharp rise against USD and other majors. The resulting volatility and bets that BOJ may be forced to ease further set gold on a bullish path.

Meanwhile, rising Brexit fears as represented polls and rise in sterling’s three-month implied volatility gauge is also adding to the safe haven demand for the metal.

All this is happening amid falling fed rate hike bets, making way for Gold bulls to flex their muscles.

Gold Technical Levels

The immediate hurdle is seen at $1244.12 (Mar 30 high), above which prices could target $1253.32 (Feb 24 high). A break higher would expose $1263.36 (Feb 11 high). On the other hand, support is seen at $1121.63 (50-DMA) under which prices may drop to $1207.69 (Mar 28 low) - $1200 levels.