But for now shockwaves are being felt across the globe and thus gold is trading higher. Prices hit a high of $1358.41 before trimming gains to trade around $1317 levels.
The Brexit shock could stay for a while and hence prices could remain above $1300/Oz levels. Any worsening of the situation - political turmoil in UK, referendum in other parts of Europe would do well for Gold . Note that such events also take Fed away from the next rate hike.
Consequently, prices could rise to $1376 (point C of the cipher pattern). Note the level is very close to $1280 (38.2% of record high – Dec 2015 low). If prices fail to take out the same and head lower, we could see Leg D unfold, although as of now a drop to Leg D = 78.6 appears unlikely.