Gold price climbs 1%, investors seek safe-haven after 'Brexit' vote

Gold price climbs 1%, investors seek safe-haven after 'Brexit' vote”

Gold rose early on Wednesday after dropping about a percent in the prior session, as concerns of uncertainty across financial markets in the aftermath of Britain's vote to exit the European Union continued to burnish the metal's safe-haven appeal.

Yesterday was a welcome ray of hope for equity investors as global stocks posted their first gains in three trading sessions since the momentous Brexit vote last week.

Weaker than expected USA economic fundamentals is setting the stage for the next gold bull market, according to exchange-traded fund provider Van Eck Global. USA gold was down 0.7% at $1,317.40.

"The general feeling is that the US Federal Reserve might not be in a rush to increase interest rates in the coming months".

"Silver is clearly profiting from two different sides at once just now: from the higher gold price on the one hand and from firm base metal prices on the other, as silver is used for the most part in industry", Commerzbank said in a note. Spot gold had fallen 0.4 percent to $1,313.36 an ounce by 0714 GMT. Before the UK's vote on Thursday, central bankers had been sounding the alarm that an exit from the European Union could be disruptive to the global economy.

Gold price is forecast to be Rs33,500 per 10 grams by December 2016 and $1,475 an ounce in the global markets.

Rather than selling his gold, Rogers said he would take some short positions as a hedge against his holdings. Being an Australian gold we've got devaluation, we devalued as well, the pound hammered but the Aussie dollar also went down because of the United States strength so you've got devaluation, you've gold price going up so margins increasing again and I think we're the sole gold producer on AIM, listed in London, so not saying we like or dislike Brexit but it certainly has been good for gold. The risk-off trading environment has benefited one asset: gold. There's widespread speculation that rates will remain low for an extended period of time as economic conditions fail to improve; some are even suggesting that not only is a 2016 rate hike now out of the question, but that we won't see the Fed move on interest rates until January 2018 at the soonest.

"We now see gold averaging $1275 this year", says Dahdah - some 31% above his previous forecast of $970 - with a "messy divorce between the United Kingdom and Europe" perhaps helping the annual average to reach $1400. That's its highest level in more than two years. Silver was 2.7 percent higher at $18.76 an ounce, having hit $18.80, the highest since September 2014. Platinum for October delivery added 32.9 dollars, or 3.36 percent, to close at 1,013.50 dollars per ounce.

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