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PRECIOUS-Gold hits 2-week low ahead of Brexit vote

* Markets wait for Britain's EU vote on Thursday
    * Yellen reiterates cautious stance on U.S. rate hike

 (Updates prices)
    By Vijaykumar Vedala
    BENGALURU, June 22 (Reuters) - Gold touched its lowest in
two weeks on Wednesday as Asian stocks rose amid indications
Britain would vote to remain in the European Union.
    Spot gold inched down 0.2 percent to $1,266 an ounce
at 0705 GMT, touching a low of $1,261.01, its worst since June
9. U.S. gold was down 0.3 percent at $1,268.30 an ounce.
   
    Bullion fell nearly 2 percent on Tuesday in its biggest
one-day loss in a month, after two opinion polls on Monday
suggested it was increasingly likely Britain would choose to
stay in the EU. 
    A vote on June 23 by Britain to leave the 28-member EU,
dubbed "Brexit," could tip Europe back into recession, putting
more pressure on the global economy, thereby increasing the
safe-haven appeal of bullion.
    "With the Brexit vote now less than 48 hours away,
participants seem to be positioning for a 'Remain' vote,
however, if the 'Leave' does win there could be a '+3 figure'
gain in gold," MKS Group trader James Gardiner said in a note,
referring to a possible rise of at least $100.
    Some analysts said it was too early to completely rule out a
British exit from the European Union.     
    "We still remain nervous about the accuracy of British polls
and so would not read too much into current ones showing the
"Remain" camp being in the driver's seat," said INTL FCStone
analyst Edward Meir in a note.     
    According to an opinion poll published on Tuesday, the
campaign for Britain to stay in the EU has seen its lead over
the rival "Out" camp cut to just one point. 
    "In case we see a 'Leave', we probably would see the upper
end of our trading range which would be $1,350. But if we see a
'Stay' I think gold will see further uncertainty and may fall
back towards the $1,200 level," said Dominic Schnider of UBS
Wealth Management in Hong Kong. 
    Spot gold may drop more to $1,252 per ounce, as suggested by
its wave pattern and a Fibonacci retracement analysis, according
to Reuters technical analyst Wang Tao. 
    Asian stocks edged up on Wednesday even as Federal Reserve
Chair Janet Yellen's cautious tone on future rate hikes added to
a subdued mood in markets. 
    Yellen said Fed's ability to raise interest rates this year
may hinge on a rebound in hiring that would convince
policymakers the U.S. economy is not faltering. 
    Holdings in SPDR Gold Trust, the world's largest
gold-backed exchange-traded fund, rose 0.39 percent to 912.33
tonnes on Tuesday, the highest since September 2013. 
    Among other precious metals, silver dropped 0.1
percent to $17.24 per ounce. Palladium edged 0.6 percent
higher to $554 per ounce and platinum rose 0.5 percent to $981
per ounce.     

 (Reporting by Vijaykumar Vedala in Bengaluru; Editing by Joseph
Radford and Biju Dwarakanath)
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