Dealing Desk: Brexit Boosts Precious Metals’ Safe Haven AppealJun 30, 2016·Kelly-Ann Kearsey
This week, we have seen an increase in client activity as the number of orders received increased after the Brexit referendum.
Clients have been seen net selling gold and silver in order to take advantage of the profits from the extraordinary price increase post-Brexit. On the other hand, some clients have been buying into gold possibly as a safe haven or speculating that the price may continue to increase.
Goldmoney’s clients have favoured the Singapore and Switzerland vaults this week with less preference being shown for the London vault.
Kelly-Ann Kearsey, Dealing Manager at Goldmoney said that precious metals overall had a strong week due to the results of the Brexit last week. Due to the much-anticipated results, gold rose almost 5% afterwards and touched a spot high of USD1,358.20/oz whilst local currencies were weakened. By Monday, the British Pound and European bank stocks were set for their biggest two-day slide as sterling reached its lowest level against the US Dollar in thirty years.
Tuesday saw the prices retreat throughout the day down a low of USD1,305/oz but managed to find support on Wednesday just above USD1,310.00/oz through early Asian trading which was supported by a weaker dollar.
US economic data had little impact on the markets this week, with most data being very close to expectations; this left the Federal Reserve in the same position of no interest rate raises in the short term, which has provided extra support to the precious metals.
Looking forward into next week, the FOMC is due to release the minutes of its previous meeting as well as the release of the US ADP national employment report. We could see the US data and news begin to take back control of the markets.
30/06/16 16:00. Gold gained 4.4% to $1,318.96, Silver increased 6.7% to $18.47, Platinum rose 4.9% to $1,013.70 and Palladium increased 5.6% to $594.76 Gold/Silver ratio: 71
NOTES TO EDITOR
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