From the Trading Desk
Gold took another crack at the psychological barrier of $1,300 last week but ultimately failed yet again to sustain gains above it. Now the market is anxiously awaiting the results of the imminent Brexit decision. On Thursday, UK voters will head to the polls to decide whether or not the United Kingdom will remain a part of the European Union. The world’s most famous currency speculator George Soros has gone as far to say that a UK exit could mean as much as a 20% drop in sterling. Polling results should start to leak on Thursday night (pacific time) and we’re expecting some volatile price movements in gold, and silver by association, for the Thursday and Friday trading sessions.
Will they Brexit or won’t they? If you look at the following chart from The Economist it looks like the undecided are coming to the side of Brexit. I added the green lines to show correlation of the “Don’t know” crowd increasing the “Leave” vote, whether online or phone polling.
If we are seeing this kind of action in polling, then why was gold down $20 most of the day today? Perhaps it’s because gold reacts inversely to the dollar and if you have a weaker Euro, because of the assumption of a Brexit, then you have pressure on gold prices.
Doug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
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