Gold Price In GBP Up 4% On Brexit and UK Risks
By GoldCore
Gold Price In GBP Rises 4% On Brexit and UK Economy Risks
– Pound fell 2% against gold yesterday after Theresa May created Brexit concerns
– May’s ‘Hard Brexit’ denial does not calm markets growing fears
– Investors concerned about lack of government strategy and uncertainty
– UK Prime Minister bizarrely blames media and “those who print things” for sterling depreciation
– GBP gold builds on 31% gain in 2016 with 4% gain so far in 2017
Gold in GBP – 1 Year and Timeline (GoldCore)
1. June 24: Brexit: Gold surged 20% in sterling to £1,015/oz in two days after UK votes to leave EU
2. August 4: Bank of England expands QE – launches latest massive money printing experiment
3. October 6: “Flash crash” — pound collapses 5% against gold in just over a minute
4. January 9: Pound falls another 2% against gold as UK PM fails to reassure markets
Gold rose to its highest in over one a month today as fears that the UK will have a ‘Hard Brexit’ with the EU led to safe-haven buying.
The pound fell sharply yesterday and gold in sterling terms rose from £954/oz to £973/oz after weekend comments from British Prime Minister Theresa May sparked concerns that Britain would drastically change trade, immigration and other relations with the EU after Brexit.
Gold has consoidated on those gains today and is over 4% higher in sterling terms so far in 2017 – building on the 31% gains seen in 2016.
The gains being seen are not simply related to Brexit. There are also substantial risks facing the UK economy in terms of the London property bubble (which shows signs of bursting), the very large UK current account deficit and the massive UK national debt.
Spot gold in dollar terms rose another 0.5% today to $1,187.60 an ounce, its highest since Dec. 5 at $1,187.61
There is also strong physical gold buying in China ahead of the Lunar New Year later in January.
Gold looks set to test $1,200 in the short term. In the coming days, attention will turn to U.S. President-elect Donald Trump’s inauguration and the geo-political and economic uncertainty regarding the next four years of his Presidency. This will likely further boost safe haven demand.
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Source: Gold Price In GBP Up 4% On Brexit and UK Risks
