SINGAPORE – Gold tumbled by the most in almost a month as a poll showed a tilt in favour of Britain remaining in the European Union (EU) just days before a historic vote, hurting demand for haven investments.

Bullion for immediate delivery lost as much as 1.4% to $1 280.47/oz, the biggest intraday drop since May 24, and traded at $1 283.85/oz at 1:50 p.m. in Singapore, according to Bloomberg generic pricing. Spot silver also sagged, declining as much as 1.2%.

Gold has benefited in the past three weeks as concern Britain may opt to leave the EU in the June 23 poll combined with the Federal Reserve standing pat on US interest rates to strengthen demand. Should voters in the UK opt for the status quo that would demolish one of the pillars that have supported bullion prices, which gained to the highest level in almost two years last week.

The latest survey “is positive for risk sentiment at least, and that would be negative for gold prices,” Bernard Aw, a Singapore-based strategist at IG Asia Pte, said by phone.

'REMAIN' AHEAD
The poll from Survation for the Mail on Sunday newspaper showed 45% of people backed the 'Remain' camp, while 42% supported 'Leave'.

Last week’s killing of pro-EU British lawmaker Jo Cox spurred a marked reduction in bets on a Brexit win. The poll was conducted after Cox’s death.

In the run-up to the vote, investors have added to holdings in gold-backed exchange-traded funds, while hedge funds are holding the second-biggest bet ever that the metal will rally further. As of Friday, the assets in ETFs rose 0.4% to 1 895.13 metric tons, the highest since October 2013.

In the week ended June 14, money managers boosted their net-long positions in gold futures and options 29% to 240 862 contracts, according to US Commodity Futures Trading Commission data. The all-time high was 253 653 reached in August 2011.

The referendum on June 23 is being watched by governments and investors all around the world amid worries that a so-called Brexit would spark a wave of turmoil across global markets. As gold retreated on Monday, the pound rallied and global equities advanced.

Prime Minister David Cameron entered the final week of campaigning with an accusation that his opponents are trying to deceive people into voting to leave. Taking audience questions on television, Cameron criticiSed them both over the tone of their anti-immigration messages and specific claims they’ve made.

In China, bullion of 99.99% purity slid 0.2% to 272.1 yuan a gram ($1 286.48/oz) on the Shanghai Gold Exchange. Silver traded 0.8% lower at $17.355/oz as platinum retreated 0.1% and palladium advanced 0.7%.