Brexit pushes gold higher, could breach $1400 an ounce

By: | Published: June 24, 2016 10:51 AM

Gold was trading at $1329 up over $67 or 5 per cent higher in global markets after news that Britain has voted convincingly for exiting the European Union.

Gold prices -brexitGold was trading at 29 up over or 5 per cent higher in global markets after news that Britain has voted convincingly for exiting the European Union. (Reuters)

The UK referendum going in favour of Brexit is likely to push gold prices to fresh highs in the coming days.

Commodity experts said gold prices would remain firm since the yellow metal would remain as the safe haven investment in uncertain times.

“Global markets will continue to remain affected in the next couple of weeks after the actual impact of Brexit comes to sink in. I see gold at $1425 an ounce in the coming days,” Gnanasekar Thiagarajan, Director, Commtrendz Research, told FeMoney.

ALSO READ: How Brexit poll would influence gold prices; should you invest?

Gold was trading at $1329 up over $67 or 5 per cent higher in global markets after news that Britain has voted convincingly for exiting the European Union.

Thiagarajan said many global investors, including British investors, had shifted to gold even before the referendum took place to ensure safety.

Naveen Mathur, Associate Director, Commodities & Currencies Business, Equity Research & Advisory, Angel Broking also feels gold could breach $1400 mark in the coming days. “The yellow metail will be in demand as a safe haven in these uncertain times. I see it breaching $1400 in the coming days and weeks,” Mathur said.

Biren Vakil, CEO Paradigm Commodity Advisors, also felt that gold will remain a preferred investment in times of uncertainty. “Gold is an insurance against unforeseen events. It is always a sought-after investment in times of trouble and chaos,” Vakil said.

Vakil felt gold will see an jump as a reaction to Brexit but will settle in a range after a few days. “This is a rapidly changing scenario and it is difficult to predict the price from here on. However, it Gold will remain firm as long as uncertainty remains,” Vakil said.

He sais that the Brexit vote came as a surprise and could lead to more such calls from other countries in the European Union which might lead to prolonged uncertainties.

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