by Matthew Johnston
The surge in gold prices since the beginning of this year following three years of decline could gain further momentum if U.K. citizens vote in favor of the Brexit, which is looking increasingly more likely. The price of gold, a metal perceived to be a safe haven for investors in times of economic stress, could “explode,” according to some analysts, if the nation votes to leave the EU in the upcoming referendum that is now only weeks away.
Gold Price Movements
Driven by the economic turmoil of the global financial crisis, the price of gold soared to record highs before peaking at around $1,900 an ounce in September of 2011. As uncertainties over the financial crisis subsided, gold’s price declined reaching to as low as around $1,050 in November of last year in anticipation of the Fed beginning a new tightening cycle.