Gold goes up amid Brexit victory
On Friday, gold surged more than 1%, following the victory of the “Leave”camp of the Brexit referendum.
Copper futures came off a seven-week winning streak, though losses appeared to be marginal while gains stabilized as the initial outcome from the British vote on the UK’s EU membership kicked in. China-traded commodities reacted to the news – it was especially true for iron, while rebar futures mostly stood still.
Gold futures gained1.6%, hitting $1,275.06 per ounce. By the way, gold’s revenues tracked those in other safe-haven assets, including bonds. At the same time, the British pound dipped during Asia trade.
Evidently, the number one precious metal had derived huge benefits from concerns over the 'Brexit' vote winning ahead of Thursday's surveys, with some traders concerned it could tip the European Union back into another downtime, thus applying more pressure on the global economy.
It could definitely curb demand for raw materials from crude to copper, bringing down prices again.