How Brexit Vote Will Shape the Price of Gold

CPM Group sees summer retreat for gold regardless of outcome

by Myra P. Saefong
Market Watch

Gold prices are likely to decline this summer then recover to $1,300 an ounce or more by year-end, no matter what the outcome of the U.K. referendum is later this week, analysts at CPM Group said in a note Monday.

Uncertainty surrounding Thursday’s referendum that will help determine if Britain remains a member of the European Union has benefited the price of gold GCQ6, -0.24% Futures prices have posted gains over the last three weeks in a row and settled at a nearly 17-month high on June 16.

But futures fell for a second session in a row on Monday, losing 0.2% to settle at $1,292.10 an ounce as fears that the U.K. will leave the EU, known as Brexit, have eased somewhat.

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