Gold Price In GBP Rises 4% On Brexit and UK Economy Risks
â Pound fell 2% against goldÂ yesterday after Theresa May created Brexit concernsÂ
â May’s ‘Hard Brexit’ denial does not calm markets growing fears
â Investors concerned about lack of government strategy and uncertainty
â UK Prime Minister bizarrely blames media and âthose who print thingsâ for sterling depreciation
â GBP gold builds on 31% gain in 2016 with 4% gain so far in 2017
1. June 24: Brexit: Gold surged 20% in sterling to Â£1,015/oz in two days after UK votes to leave EU
4. January 9: Pound falls another 2% against gold as UK PM fails to reassure markets
Gold rose to its highest in over one a month today as fears that the UK will have a ‘Hard Brexit’ with the EU led to safe-haven buying.
The pound fell sharply yesterday and gold in sterling terms rose from Â£954/oz to Â£973/oz after weekend comments from British Prime Minister Theresa May sparked concerns that Britain would drastically change trade, immigration and other relations with the EU after Brexit.
Gold has consoidated on those gains today and is over 4% higher in sterling terms so far in 2017 â building on the 31% gains seen in 2016.
The gains being seen are not simply related to Brexit. There are also substantial risks facing the UK economy in terms of the London property bubble (which shows signs of bursting), the very large UK current account deficit and the massive UK national debt.
Spot gold in dollar terms rose another 0.5% today to $1,187.60 an ounce, its highest since Dec. 5 at $1,187.61
There is also strong physical Â gold buying in China ahead of the Lunar New Year later in January.
Gold looks set to test $1,200 in the short term. In the coming days, attention will turn to U.S. President-elect Donald Trump’s inauguration and the geo-political and economic uncertainty regarding the next four years of his Presidency. This will likely further boost safe haven demand.
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Gold and Silver Bullion â News andÂ Commentary
Gold Prices (LBMA AM)
10 Jan: USD 1,183.20, GBP 974.60 & EUR 1,118.12 per ounce
09 Jan: USD 1,176.10, GBP 968.75 & EUR 1,118.59 per ounce
06 Jan: USD 1,178.00, GBP 951.35 & EUR 1,112.27 per ounce
05 Jan: USD 1,173.05, GBP 953.55 & EUR 1,116.16 per ounce
04 Jan: USD 1,165.90, GBP 949.98 & EUR 1,117.40 per ounce
03 Jan: USD 1,148.65, GBP 935.12 & EUR 1,103.28 per ounce
30 Dec: USD 1,159.10, GBP 942.58 & EUR 1,098.36 per ounce
29 Dec: USD 1,146.80, GBP 935.56 & EUR 1,094.85 per ounce
Silver Prices (LBMA)
10 Jan: USD 16.66, GBP 13.73 & EUR 15.76 per ounce
09 Jan: USD 16.52, GBP 13.57 & EUR 15.69 per ounce
06 Jan: USD 16.45, GBP 13.30 & EUR 15.54 per ounce
05 Jan: USD 16.59, GBP 13.47 & EUR 15.80 per ounce
04 Jan: USD 16.42, GBP 13.36 & EUR 15.74 per ounce
03 Jan: USD 15.95, GBP 12.97 & EUR 15.34 per ounce
30 Dec: USD 16.24, GBP 13.20 & EUR 15.38 per ounce
29 Dec: USD 16.06, GBP 13.10 & EUR 15.36 per ounce
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