End-of-week top gold stories

Friday, 01-Jul-2016

CTS Staff (Crush the Street) The rush to gold: A new respect is growing You didn’t come here today for bad news. There’s plenty of that everywhere you look, and even where you don’t look. So here’s the good news. A new rush to gold has begun. To see where we’re headed, let’s first see where we’ve been.

MK Note: This article is a short summation of the forces at work in the gold market. I think newcomers playing catch-up will find it particularly useful. Now would be a good time to take a deep breath – make an attempt to assess what just happened and its likely effects, not just on the global economy but your own wealth as well (be it large or small).

Ranjeetha Pakiam (Bloomberg) Gold Extends Biggest Rally in Seven Years as Brexit Hits Markets Gold extended the biggest surge in seven years as the fallout from the U.K.’s decision to leave the European Union boosted haven demand.

Bullion rose for a second day as the pound extended a record selloff and European equities fell to the lowest since February. Gold jumped 4.7 percent on Friday as the referendum result caused turmoil across global markets, spurring a $4.3 billion surge in holdings in bullion-backed funds, the most in four years.

PG Note: The market clearly wasn’t positioned for the decision by UK voters to leave the EU, choosing instead to believe the polls and the betting lines. That the people of the UK are willing to endure the short to medium term pain of a Brexit in the hopes of a brighter future could mark an important sea change; one that policymakers should make note of . . .

Angie Lau (Bloomberg) Gold Veteran Says Brexit May Be Start of ‘Major Bull Market’ Gold may stand at the start of a major bull market should the U.K.’s Brexit vote prove to be a forerunner of greater political and financial instability around the world, according to Evolution Mining Ltd.’s Jake Klein, a veteran of more than 20 years in the industry.

PG Note: Uncertainty is clearly ramping in the wake of the Brexit vote. And so too is the price of gold.

(Reuters, via CNBC) Gold set for best month since February after Brexit shock Gold edged down on Thursday as the wider markets showed signs of stabilising, but the metal remained on track for its biggest monthly rise since February in the wake of last week’s vote on Britain’s membership of the European Union.

PG Note: Not only was June a great month for gold, but so was Q2 and H1. Gold was the 4th best performing assets through the end of H1, bested only by silver, sugar and soybeans.

Share
This entry was posted in Today's top gold news and opinion. Bookmark the permalink.