Investing.com - Gold futures extended losses from the prior session in European trade on Wednesday, falling to the lowest level in almost two weeks as investors looked ahead to Thursday’s highly-anticipated referendum on whether Britain will choose to remain in the European Union.
Gold for August delivery on the Comex division of the New York Mercantile Exchange fell to an intraday low of $1,263.80 a troy ounce, the weakest since June 9. It last stood at $1,267.45 by 06:50GMT, or 2:50AM ET, down $5.05, or 0.4%.
A day earlier, gold tumbled $19.60, or 1.52%, its biggest one-day loss in a month, on growing expectations that Britain would vote to remain in the European Union.
Politicians on both sides of the debate will be making their last arguments today ahead of polling stations opening tomorrow at 6:00GMT, or 7:00AM London time. Polls will close at 21:00GMT, or 10:00PM in London. The result will likely be projected early Friday, before the official vote count is announced, based on preliminary vote counts and exit polling.
Meanwhile, investors digested comments from Federal Reserve Chair Janet Yellen. Beginning her two-day testimony before Congress, Yellen reiterated that she expected rate hikes to gradually increase this year, but warned that there was considerable uncertainty over the economic outlook.
Yellen added that a U.K. vote to leave the EU could have significant economic repercussions.
She will appear in front of the House of Representatives' Committee on Financial Services at 14:00GMT, or 10:00AM ET, on Wednesday.
According to CME Group's (NASDAQ:CME) FedWatch tool, market players are pricing in a 12% chance for a rate hike in July and 33% for September. Odds for a December rate increase stood at 54%.
Gold soared to $1,318.90 late last week, the most since August 2014, as worries about a potential exit by the U.K. from the European Union left investors scrambling for safe haven assets.
Prices of the precious metal are up nearly 5% so far in June, as market players pushed back expectations for the next U.S. rate hike and amid mounting concerns the U.K. will vote to leave the European Union in a referendum this month.
Elsewhere on the Comex, silver futures for July delivery declined 6.9 cents, or 0.4%, to trade at $17.25 a troy ounce during morning hours in London, while copper futures eased up 0.5 cents, or 0.24%, to $2.121 a pound.