Gold climbed to highest value of the past two years – a Brexit effect


The price of gold rose to the highest price of the last two years in Asian markets, as investors headed for safe assets such as gold due to market turbulence caused by the decision of Britain to leave the European Union, informs Reuters quoted by Agrepres.

On the spot market, an ounce of gold rose Wednesday at $ 1,371.40, the highest value recorded after March 2014 and around 4.01 GMT it was being traded at $ 1,367.20, up by 0.9% compared to the value recorded at the closing of the previous sitting.

The price of gold, considered a safe haven value in times of economic and financial uncertainty, increased by almost 29% this year and is on track to record the biggest annual gain after 2010.

“Nobody can understand how many risks will arise from Brexit. This kind of uncertainty is not appreciated by anyone. This is the factor that leads the prices for gold up,” said Helen Lau, analyst at Argonaut Securities in Hong Kong.

Another factor that boosted the gold price were the comments performed by the president of the Federal Reserve of New York, William Dudley, who said the US central bank can be patient with higher interest rates because of the low inflation and uncertainty, regarding the prospects for US economy .

Investors will try to identify signals about the future intentions of members of the monetary policy from the Federal Reserve upon the publication of excerpts from the June 14-15 meeting, which will be released on Wednesday.


Leave A Reply