Daily Gold Update

Source: Bill Musgrave, American Gold Exchange

Austin— Gold dipped 0.2% to close at $1,270 as traders squared positions ahead of tomorrow's crucial Brexit vote.

Despite current polls showing the context too close to call, the euro and UK pound rallied against the dollar, suggesting forex markets are wagering that the British will decide to remain within the European Union.

Commodities traders seemed not quite so sanguine, with speculators driving gold prices lower for a third day by closing out long positions in gold futures to limit losses, just in case, according to Reuters.

Further pressuring gold, oil prices fell around 2% after the U.S. Energy Information Administration reported domestic crude supplies fell by 900,000 barrels. Gold often trades in tandem with oil as a hedge against energy-inflation.

Existing home sales rose 1.8% to a nine-year high in May. The data had little impact on the markets because the Fed's recent dovish tone, supported by Janet Yellen's Congressional testimony over the past two days, leaves virtually no doubt that the Fed will refrain from hiking interest rates in the near future.

The other precious metals were mixed, with silver edging down 0.1% while platinum and palladium gained 0.2% and 2%, respectively.

At the Comex close: August gold dipped $2.50 to $1,270; July silver edged down a cent to $17.31; July platinum added $2, to $983.50; and September palladium gained $10.90 to $562.25 an ounce.