Gold inter-market: Risk remains to the downside as Bremain likely

Gold prices remained under pressure so far this week, now extending its three-day losing streak on renewed optimism, as markets seem to have almost priced-out a Brexit scenario. Most of the latest Brexit opinion poll results showed that the ‘Remain’ camp remains an overall winner.

At the moment gold hovers near two-week lows near $ 1265 mark, with the downside accentuated by a sharp sell-off in the USD/JPY from above 105 handle. While a simultaneous rise in the US stocks suggested risk-on back in vogue and hence, added to the decline in the precious metal.

While VIX (volatility index) continued to slide, unable to justify the downslide in gold, as both keep moving in separate ways. Hence, ahead of the EU referendum, the moves in the USD/JPY should be closed tracked for next direction on the bullion.