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Precious Metals

Gold jumps to $1270 (£859.44) as investors turn nervous

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A sudden bout of demand for safe-haven assets on growing nervousness over the final outcome of the crucial Brexit vote lifted Gold back towards $1270 (£859.44) level after bottoming out around $1261 (£853.34).

Following last week’s tragic murder of UK MP Jo Coz, a pro-EU leader, market started pricing-in a sure win for the ‘Remain’ camp that was seen hurting demand for the precious metal, which continued its fall on Wednesday for third consecutive day.

However, as the key UK-EU referendum vote got underway, investors turned nervous and a renewed risk-aversion boosted demand for safe-haven assets – like gold and Yen. Despite recent polls showing lead for the ‘Remain’ camp, the actual outcome was too close to call for as support for both the camps remained equal.

Going forward, risk sentiment surrounding the referendum vote would continue to drive demand for safe-haven assets – like gold.

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Paul

The author Paul