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Britain Cuts Out – Gold Takes Off!

Britain Cuts Out – Gold Takes Off!
Category: Market Reports
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Posted: 06-27-2016 12:41:00 PM

Brexit shakes up the market with four for four in spot price spikes for the precious metals participants.

It’s official. In a stunning referendum vote, the U.K. decided to leave the European Union. It’s not what the pundits or poll watchers were expecting as the world woke up to the news on Friday. The effect on the global financial markets was both immediate and impactful.

Investors quickly moved, quite predictably, to the safe haven of precious metals. Gold smashed through the $1,300/oz. barrier—trading as high as $1,358.20/oz., its highest water mark in over two years. Some strategists are openly stating that the yellow metal will go even higher, perhaps over $1,400/oz.

 

Other precious metals and related exchange traded funds didn’t fare so bad either. SPDR Gold Trust GLD, the largest of these funds, rose two percent to 934.31 tons on Friday, its biggest spike since July 2013.

Also on Friday, spot silver was up 0.5 percent to $17.78 an ounce, topping a record held since January 2015.

Platinum was up 0.6 percent to $986.15 per oz. and palladium rose 0.7 percent to $550.65.

That’s four for four in spot price spikes for the precious metals participants.

The Brexit Vote also has many predicting that this unexpected turn of events will all but close out any talk of a further Fed interest rate hike here at home for the remainder of 2016.

While we’re admittedly excited in this increased value and interest in the precious metals market, what long term effects may occur as a result of this historic vote remain to be seen. Stay tuned…

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About The Author

Walter Pehowich Author Name: Walter Pehowich
This editorial has been prepared by Dillon Gage Metals. This document is for information and thought-provoking purposes only and does not purport to predict or forecast actual results. It is not, and should not be regarded as investment advice or as a recommendation regarding any particular security, commodity or course of action. Opinions expressed herein are current opinions as of the date appearing in this editorial only and are subject to change without notice. Reasonable people may disagree about the opinions expressed herein. In the event any of the assumptions used herein do not prove to be true, results are likely to vary substantially. All investments entail risks. There is no guarantee that investment strategies will achieve the desired results under all market conditions and each investor should evaluate its ability to invest for a long term especially during periods of a market downturn. No part of this editorial may be reproduced in any manner, in whole or in part, without the prior written permission of Dillon Gage Metals. This information is provided with the understanding that with respect to the opinions provided herein, that you will make your own independent decision with respect to any course of action in connection herewith and as to whether such course of action is appropriate or proper based on your own judgment, and that you are capable of understanding and assessing the merits of a course of action. You may not rely on the statements contained herein. Dillon Gage Metals shall not have any liability for any damages of any kind whatsoever relating to this editorial. You should consult your advisors with respect to these areas. By posting this editorial, you acknowledge, understand and accept the foregoing.

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