Gold prices rush to end
Gold’s quite impressive revenues on uncertainty over the UK’s membership in the EU are likely to lose their steam, no matter whether British voters decide to leave this bloc or remain there.
Last week, the number one precious metal hit its highest value since August 2014. However, the gold market surges along with other safe assents, including the Swiss franc, Japanese yen and German bunds.
Recent surveys hint at an even split and in spite of the fact traders are concerned with the economic as well as market fallout of the so-called Brexit.
Obviously, a clear win for the Remain side will push American yields up as the potential drag on the global economy as well as risk appetite is no longer actual.
Some financial analysts foresee that gold in dollars will most probably sag 4-5%.
The most popular precious metal is negatively correlated to soaring American real yields. It’s because the opportunity cost of holding this stuff goes up.
Another serious reason for this commodity to see a steep, tough short-lived dip is that during a recession, gold might be utilized as a source of cash in order to cover losses.