The spot gold price jumped during Asian trading hours on Friday as early UK EU referendum vote results showed the ‘leave’ camp gaining strength.
Spot gold was last at $1,280.20-1,280.60 per ounce, up $21.7 from Thursday’s close. Trading ranged at $1,258.15-1,285.62 so far.
All eyes are on the UK’s EU referendum results with markets extremely volatile while results trickle in.
Initial results from voting had showed the ‘remain’ camp in the lead sending the sterling to a 2016 peak against the dollar. But the ‘leave’ camp has since caught up and votes counted so far show the ‘Leave’ camp having 50.9 percent of votes at 0320BST.
Trading is likely to become more volatile throughout coming hours, as further developments emerge from the UK vote – the final result will be announced at 0700BST.
Expectations have been leaning towards ‘remain’ throughout the week which has put pressure on both gold and silver, but initial results from the vote so far shows a tight race, said MKS Group on Friday morning.
“Should a ‘leave’ result occur, markets will be hit with losses probably not seen since the global financial crisis,” the broker cautioned.
The yellow metal has strong support around $1,225/30 while the topside of $1,315 could be taken out if a ‘leave’ vote wins, it added.
The British pound has so far dropped to $1.4177 against the dollar, down 4.77 percent from the previous day’s close. The US dollar index is up 1.51 percent to 94.80 so far on Friday.
In other commodities, benchmark crude oil prices fell on Friday morning. The Brent crude spot price slipped 3.33 percent to $49.42 per barrel, and the Texas light sweet crude spot price decreased 3.09 percent to $48.56 recently on Friday.
In equities, the Shanghai Composite slipped 0.31 percent to 2,883.06 so far on Friday.
In US data released Thursday, unemployment claims between June 10-17 came in at 259,000, under the forecast of 271,000 and more importantly below the psychological 300,000 mark.
Flash manufacturing PMI for June came in at 51.4, besting expectations of 50.6 and above the previous figure of 50.7.
US data due later today includes core durable goods orders, durable goods orders, revised UoM consumer sentiment and revised UoM inflation expectations.
In other precious metals, silver increased $0.140 to $17.405/17.435. Platinum surged $10 to $971/976, while palladium dropped $5 to $556/562 recently on Friday.
On the Shanghai Futures Exchange, gold for December delivery was unchanged at 271 yuan per gram and December silver was flat at 3,827 yuan per kilogram.
The post Gold jumps as ‘leave’ gains strength in early Brexit vote results appeared first on The Bullion Desk.
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Source: Bullion Desk News
