(MENAFN- ProactiveInvestors - UK) The price of gold dipped sharply on Monday as fears of a Brexit eased after the latest poll suggested that the Remain campaign was in the lead ahead of Thursday''s referendum.
The price of gold has benefitted from polls which suggested that the Leave campaign was leading the way, prompting volatility in many markets.
But an opinion poll by Survation for the Mail on Sunday yesterday claimed that 45% are in favour of remaining, with only 42% in favour of leaving.
The slight tilt in opinion towards the Remain camp comes after the death of MP Jo Cox on Thursday, who was shot and killed by a man allegedly shouting ''freedom for Britain''.
Gold is traditionally seen as a safe haven in times of uncertainty, so fears over a Brexit, combined with a dovish Federal Reserve in the US, have helped gold rise steadily over the last week or so.
Volatile few days
''Clearly [the latest opinion poll] is helping calm the financial markets again somewhat, as a result of which gold is currently in less demand,'' analysts at Commerzbank said in a note on Monday.
''That said, the referendum will doubtless be the dominant theme this week. In our opinion, the uncertainty over the outcome of the vote should lend support to gold,'' they added.
David Govett expects an understandably volatile few days in the run-up to Thursday''s vote, which again, could help gold.
''No figures of any importance today will see the market thin, jumpy and nervous and I suspect it will stay that way for the majority of the week,'' Govett explains.
''Keep a close watch on any poll numbers as and when they come out.''
Govett remains unconvinced that the UK will vote to leave the EU and so, ''on that basis, we should see gold pull back at some point towards the end of the week.''
''I would look to sell rallies and buy it back if and when the pullback occurs. A risky strategy perhaps, but then when is trading gold anything else?'' he adds.
Shortly before UK market close, gold was down US$19 to US$1,279, silver was down 6c to US$17.41, while platinum added US$12 to trade at US$979.
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