Dealing Desk: Brexit Discussions Control Precious MetalsJun 23, 2016·Kelly-Ann Kearsey
This week, clients have been net selling gold and silver whilst net buying platinum and palladium.
Clients have been speculating on the market conditions ahead of the Brexit referendum. There has been increase in client buying activity this afternoon especially as we draw closer to the releasing of the results.
Goldmoney’s clients have favoured the Singapore vaults this week with less preference being shown for the London vault.
Kelly-Ann Kearsey, Dealing Manager at Goldmoney said that gold hovered near its lowest in over a week on Wednesday as Asian stocks rose; this followed into Thursday, as gold touched a two-week low in advance of the much anticipated Brexit referendum. The final decision will be announced tomorrow as to whether the UK will stay or leave the European Union.
Should the UK vote to leave the European Union, more pressure will be put on the global economy, giving support to bullion’s safe-haven appeal, which was also a possible support for the gold price last week being above USD1,300/oz.
The opinion polls conducted immediately prior to the polling stations opening suggested that a ‘Bremain’ is more likely than a ‘Brexit’ which is a likely cause behind the retreat in price this week. Should they vote to keep the UK within the EU, volatility of the precious metals could well increase.
Looking forwards into next week, we can expect to see the US GDP figures being released on Tuesday and Janet Yellen from the FOMC will also be speaking on Wednesday. After the referendum in the UK, this could be the next data to either give support or suppress the precious metals.
23/06/16 16:00. Gold lost 3.8% to $1,263.30, Silver decreased 2.6% to $17.30, Platinum fell 1.8% to $966.65 and Palladium increased 5.4% to $563.45 Gold/Silver ratio: 73
NOTES TO EDITOR
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