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Gold holds two-day slump as investors count down to Brexit vote
[SINGAPORE] Gold held a two-day slump on speculation that Britain's voters will probably vote to stay in the European Union in a referendum on Thursday, undercutting demand for haven assets.
Bullion for immediate delivery traded at US$1,268.80 an ounce at 8:02 am in Singapore from US$1,268.12 on Tuesday, which capped a two-day, 2.4 per cent loss, according to Bloomberg generic pricing.
Gold has retreated this week as bookmakers have suggested the "Remain" camp is in a strong position even as different polls have put each side ahead. That's pared the metal's advance this year, which has been driven by the US Federal Reserve holding fire on rate rises.
Fed Chair Janet Yellen on Tuesday laid out a cautious view of the economy in testimony before lawmakers.
"Investors remain cautious despite recent polls suggesting the chances of the UK leaving the EU had fallen," Australia & New Zealand Banking Group Ltd said in a report.
"Gold, the most direct indicator of global risk in the commodity space, has come under continued selling pressure in recent days."