Daily Gold & Silver Market Report – 6/24/2016
Jennifer Carter
6/24/2016 9:52:00 AM
GOLD JUMPS, WORLD STOCKS DECLINE ON SUCCESSFUL BREXIT VOTE
Spot Gold is up near 8 percent Friday, reaching its highest point in more than two years and peaking at $1,358.20 per ounce following British citizens voting to leave the European Union. Euro-priced Gold rose as much as 13 percent. World stocks are headed for a slump due to the uncertainty in the market. "This isn't necessarily about Britain, it's about uncertainty in the world's largest economy," said Amanda van Dyke, fund manager at Peterhouse Asset Management. "The general commentators are suggesting that the [U.S. Federal Reserve] is no longer going to raise rates because the dollar is soaring, and they can no longer afford for the dollar to keep going as fast as it is. Realistically, the ability of the European market to speak with a common voice I think has been permanently severed, and that's going to be a solid 5 percent (price increase) in Gold for at least the next couple of years."
Gold prices will further be boosted by the panic sweeping the market after the successful Brexit vote. The dollar is down slightly, however with the decline in other currencies, it is showing short-term gains. “This is just the kind of crisis [that] Gold helps savers and investors insure against. Gold offers certainty and security as stock markets and currencies sink, just as it did during the 2008 meltdown. The difference is that this shock was clearly signposted and many private investors didn’t wait for today’s result to get prepared,” BullionVault head of research Adrian Ash told MarketWatch Friday. Many analysts expected the Gold-supportive reaction following the Brexit vote to ease, though most expect Gold’s strength to remain until the Fed’s interest rate increase talks begin again.
At 09:52 A.M. (ET), the APMEX Precious Metals spot prices were:
- Gold, $1,318.60 up $55.90
- Silver, $17.86 Up $0.46
- Platinum, $985.60 Up $18.30
- Palladium, $551.60 Down $15.80
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APMEX Market Reports provide our readers with a review of spot price activity and some of the factors that may be affecting the market for Precious Metals. While the information is obtained from sources we believe to be reliable, we do not guarantee its accuracy or its completeness and we encourage you to conduct your own investigation prior to making any decision based on the information. The Market Reports are not intended as a comprehensive discussion and there may be other factors affecting the financial marketplace. These Market Reports are provided for informational purposes only and do not constitute a recommendation by APMEX to hold, purchase or sell any Precious Metal product. All orders, purchases and sales, if any, are subject to the terms of the User Agreement and other applicable policies
