Brexit Chaos: Gold Prices Near 2-Week High

Gold Prices Near 2-Week High as Pound Rallies Amid UK Brexit Resignation ‘Sideshow’

Steffen GrosshauserBullion.Directory precious metals analysis 09 July, 2018
By Steffen Grosshauser

European Operations Executive at Bullion Vault

GOLD PRICES rose $10 to a 2-week high of $1265 on Monday morning while the Dollar slipped as new US-Chinese trade tariffs began and the UK’s chief Brexit negotiator resigned over the Government’s plan for a trade deal with the EU.

The US and China started the first round of ‘tit for tat’ tariffs on $34 billion of each other’s annual exports on Friday.

The Dollar index, which measures the greenback’s performance against a basket of other major currencies, today fell 0.2% to its lowest since mid-June after Friday’s US jobs data showed the unemployment rate increasing while average wages grew less than expected.

topsteptrader banner

European stocks followed Asia higher as the Chinese Yuan also rallied on the currency markets.

“The tariffs were already priced in,” reckons Josh Graves, senior commodities strategist at RJO Futures.

“Gold needs more than a trade war to push it higher,” he added. “It needs volatility in equities, weaker economic data, a dovish Fed.

“Gold needs to see closes above $1275-$1280 before it finds any support.”

Chart of Dollar gold prices. Source: BullionVault

Silver prices tracked gold, also rising to the highest level since 27 June at $16.20 per ounce.

Platinum and palladium reached multi-week highs at $858 and $967 respectively.

The British Pound also rose against the Dollar on Monday – and it rallied near 1-week highs versus the Euro – after leading Brexiteer David Davis resigned from his role of chief negotiator in protest at Prime Minister Theresa May’s proposal for “a UK-EU free trade zone” to follow the Article 50 deadline in March 2019.

With May’s parliamentary majority needing the support of all her Conservative MPs plus Northern Ireland’s DUP, UK bookmakers today cut their odds on a 2018 General Election – the third in 4 years if it happened – as short as 9/4.

The UK gold price in British Pounds per ounce moved in a £7 range around last week’s finish at £945.

The next round of UK-EU negotiations is now due to start next week.

“With the ongoing US-Sino trade tensions, the resignation of David Davis will likely be a side-show,” reckons Singapore-listed bank OCBC’s analyst Barnabas Gan, “though it may raise some concerns amongst market-watchers depending on how the overall Brexit issue progresses.”

This article was originally published here
Bullion.Directory or anyone involved with Bullion.Directory will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading in precious metals. Bullion.Directory advises you to always consult with a qualified and registered specialist advisor before investing in precious metals.

FREE REPORT: 5 "Tells" that the Metals Markets Are About to Reverse

elliot-wave-reportJump on once-in-a-lifetime opportunities and avoid dangerous pitfalls no one else sees coming.

We can help you prepare for opportunities and side step risks that will surprise most investors. The insights that you'll gain are especially applicable to the price patterns of key financial markets, including precious metals and the stock market now.

Read the Free Report Now - Immediate Access, No Email Required.

Leave a Reply

  I accept your GDPR / Data Protection Policies