Daily Gold & Silver Market Report – 6/27/2016

Paul Stevens

6/27/2016 11:46:00 AM

METALS CONTINUE RISE AS MARKETS DIGEST BREXIT

Precious Metal prices continue to rise as investors around the world digest the United Kingdom’s decision to leave the European Union, commonly known as Brexit.  Gold prices are hovering around two-year highs as investors rapidly sell equities and turn to safe-haven assets.  Historically, during times of uncertainty, Gold has had a negative correlation to crashing world markets. ETF Securities analyst Martin Arnold said, “The uncertainty around the timing of negotiations to leave the EU means that not only do investors become more defensive and buy things like Gold and the dollar, but it also keeps sterling under pressure and translates into a permanent loss of economic activity at domestic level.”

Markets around the world are searching for footing after massive selloffs across the board due to Brexit.  The fallout is also affecting banks and most think the U.S. Federal Reserve and other central banks will need to adjust their monetary strategy going forward.  IG Market Analyst Joshua Mahoney said, “There is little doubt that global monetary policy will have to adjust to this historic decision, and with markets now pricing in a 50% chance of a July rate cut from the [Bank of England], the idea of a [Federal Reserve] rate hike appears dead in the water.”

At 12:45 P.M. (ET), the APMEX Precious Metals spot prices were:

• Gold, $1,325.30 Up $3.90
• Silver, $17.80 Down $0.03
• Platinum, $982.20 Down $5.90
• Palladium, $555.60 Up $7.70

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