Gold surged to its highest level in more than two years after the UK voted to leave the European Union sending shockwaves across markets.
– The spot gold price was last at $1,317.55/1,317.85 per ounce, up $59 on the previous close. Trade has ranged from $1,258.15 to $1,359 – its highest since March 2014 – so far.
– “This morning’s moves may well have been extremely volatile as markets tend to be thin in the early hours, we would expect more volatility as Europe opens but as it does, there is also likely to be more direction and damage limitation from politicians,” William Adams, FastMarkets head of research, said.
– The UK has voted to leave the EU after 43 years – the first country to leave since EU’s formation. Leave won by 52 percent to 48 percent with England and Wales voting strongly for leave, while London, Scotland and Northern Ireland backed staying in the EU. The referendum turnout was 71.8 percent with more than 30 million people voting.
– The pound plunged to its lowest level against the dollar since 1985 – it was last at 1.3635.
– “Gold should see investor favour resume on safe-haven Brexit buying, while other prices drivers such as the US dollar, Fed and wider macro themes, may amplify the move higher,” Citi’s David Wilson said.
– In the other precious metals, silver climbed above $18 in today’s session – its highest since January 2015 – it was last at $17.690/17.735, up 40 cents. Platinum at $974/979 was up $14 and palladium fell $15 to $546/552.
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Source: Bullion Desk News
