Gold edged up after touching a fresh two-week low early on Thursday on cautious optimism that British voters would opt to stay in the European Union. A vote to leave the 28-member bloc could tips Europe back into recession, putting more pressure on the global economy and increasing the appeal of bullion as a counter-cyclical asset.
Polling will take place between 0600-2100 GMT on Thursday, with the results expected early on Friday. Spot gold was up 0.3 percent at $1,269.60 an ounce by 0644 GMT. Bullion touched a low of $1,260.36 earlier in the session, its worst since June 9. US gold was up 0.2 percent at $1,272. "In the near term, gold appears heavily focused on the United Kingdom referendum vote and will likely move according to the results," HSBC analyst James Steel said in a note.