Because of the political and economic uncertainty created by Brexit, analysts started speaking of gold bull market – gold is an all-time safe haven. The uncertainty is unlikely to disappear anytime soon – a factor, which should keep providing the precious metal with support. Other reasons to expect higher gold prices include continuous monetary stimulus by key central banks (the Federal Reserve is no longer expected to raise interest in the coming months) and low government bond yields.
XAU/USD spiked to $1358.20 on June 24 exceeding 2015 high before it returned lower to the $1310 area (200-week MA). Next support is at $1270 (100-day MA)/$1257.63 (weekly pivot support).
Note, however, that one has to find a right level to enter a long position. Resistance is also provided by $1332 – 38.2% Fibo of the 2012-2015 decline and 50-month MA. There may be more of consolidation before the bulls are able to clear these resistance levels. Don’t be in a hurry and wait for a good entry signal. The next trigger may be the release of US Nonfarm Payrolls on July 8.