Watch For Gold To Do This Post-Brexit – Kitco’s Peter Hug

from Kitco NEWS

lass=”” >Gold ended Wednesday slightly weaker, falling to a two-week low. With Thursday’s Brexit vote looming, sellers in the gold market seemed scarce. ‘It is expected that if the UK votes to remain within the EU, capital will re-deploy into risk assets, especially in the continent. The perception is that a vote to remain will stabilize the investment prospects and allow for the ECB’s monetary policy to take hold and create growth, ‘ said Peter Hug, global trading director for Kitco Metals. He explained that a vote to leave would not have direct immediate economic impact but the uncertainty of the ‘new’ arrangement will curtail capital investment. “Gold should remain in the $1,265 – $1,278 range until the vote,” he said, adding that if the British public decides to leave, the metal should bounce to $1,300 quickly. Hug also had frank words for Federal Reserve chair Janet Yellen, calling the central bank “an embarrassment.” August gold futures settled Wednesday at $1,270 an ounce, down $2.50 for the day.

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