Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22
Best Metaverse Tech Stocks Investing for 2022 and Beyond - 14th Jan 22
Gold Price Lagging Inflation - 14th Jan 22
Get Your Startup Idea Up And Running With These 7 Tips - 14th Jan 22
What Happens When Your Flight Gets Cancelled in the UK? - 14th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold Prices Surge After Poor Jobs Number, Increased Risk Of BREXIT

Commodities / Gold and Silver 2016 Jun 07, 2016 - 03:53 PM GMT

By: GoldCore

Commodities

Gold prices surged nearly 3% after the very poor jobs number on Friday, have maintained those gains and appear to be consolidating as concerns about the U.S. economy and BREXIT deepen.


Gold Prices in USD – 1 Week (GoldCore)

Gold was marginally higher yesterday and 2.7% higher last week breaking a run of recent weekly losses and a 5% loss in May.

BREXIT concerns are gaining momentum after three recent polls suggested that the ‘leave’ side are gaining an advantage and a BREXIT looks more likely.

An ITV poll showed 45% for “Leave” and 41% for “Remain.” A survey by global market research company TNS showed 43 percent backing an EU exit, and 41 percent wanting to stay in. An online poll showed 48 percent supported leaving the EU, while 43 percent were in favor of remaining and 9 percent were undecided, according to ICM.

This is leading to concerns about a coming period of market volatility and turmoil. This should support gold and silver and indeed lead to gains on safe haven demand.

Sterling fell versus gold 1.2% yesterday – from £857 to £867.66 per ounce after the polls showed UK citizens favoured leaving the EU. That revived concerns the BREXIT referendum on June 23 will throw global markets into turmoil and severely undermine confidence in the already vulnerable, nascent EU super state.

The pound also dropped to a three-week low versus the dollar after the polls. While the pound pared its earlier declines, a gauge of anticipated swings against the dollar in the next month surged to the highest in at least seven years. One-month implied volatility in pound dollar trading rose above 22 percent, the highest since February 2009.

Gold has given up some of those gains since as sterling has recovered and as odd ‘fat finger’ trades helped sterling bounce overnight. Gold in sterling terms had risen 5.5% since the start of last week (May 30), due to increasing BREXIT concerns and the poor jobs number in the U.S.

Markets participants are preparing for turmoil. “The result is going to be announced at an awkward time, in the middle of the night,” said Joe Rundell, head of trading at ETX according to the BBC. “And we expect that whatever the result there will be significant movements on the FTSE 100, the sterling markets and in gold.”

Gold rallied 2.8% percent back above $1,245 on Friday after the very poor jobs number saw traders sell risk assets especially equities and allocate to safe haven assets.

The May employment report showed Americans returned to the labour market at their slowest pace in almost six years. The US non farm workforce added only 38,000, jobs missing the forecast of 160,000 and indicating that the US is in recession or heading to recession. Additionally, the March and April figures were revised 22,000 and 37,000 lower respectively.

Federal Reserve Chair Janet Yellen looks set to stay uber dovish and maintain ultra low monetary policies due to concerns about the U.S. economy, global economy and indeed BREXIT.

Yellen said at the weekend that the risk of Brexit is also weighing on the Fed’s interest rate decision. She warned that a UK vote to leave the European Union could badly impact the U.S. and global economy and affect the timing of the next interest rate rise. Market participants are concerned that the fragile U.S. and global recovery is spluttering and even a very small interest-rate increase of 25 basis points could derail the U.S. and global economies and lead to a recession.

A vote for BREXIT should see gold and silver rise sharply on a safe haven bid in futures markets and safe haven demand for bullion. A vote to remain would be expected to see gold and silver fall as risk appetite comes back into the market supporting equities and sterling. However, price weakness in the precious metals would likely be short term given the current strong supply and demand fundamentals for them.

Breaking News and Commentary
Pound slides as polls show Brexit support, as Yellen hints at US rate rises – Bloomberg
Gold holds near two-week highs as cautious Yellen hurts dollar – Reuters
Asian Stocks Rise as Commodities in Bull Market – Bloomberg
Gold Futures Rise as Bets Mount That Fed Will Delay Rate Rise – Bloomberg
Gold futures close at 2-week high as Yellen ‘plays charades’ – Marketwatch

Cable Plunges After “Leave” Voters Overtake “Remain” In Latest Brexit Poll – Bloomberg
Bank of Montreal warns against other banks in gold business – Reuters via GATA
Massive Explosions Cripple Nigerian Oil Industry – Traders DNA
Why Big Job Misses Are Likely to Continue – Financial Sense
US Jobs Report: Rocket Fuel For Gold – 321 Gold
Read More Here

Gold Prices (LBMA AM)
07 June: USD 1,241.10, EUR 1,091.42 and GBP 851.02 per ounce
06 June: USD 1,240.55, EUR 1,092.67 and GBP 859.08 per ounce
03 June: USD 1,211.00, EUR 1,086.63 and GBP 839.34 per ounce
02 June: USD 1,215.50, EUR 1,085.32 and GBP 842.10 per ounce
01 June: USD 1,216.25, EUR 1,090.00 and GBP 841.77 per ounce

Silver Prices (LBMA)
07 June: USD 16.31, EUR 14.36 and GBP 11.18 per ounce
06 June: USD 16.40, EUR 14.47 and GBP 11.39 per ounce
03 June: USD 16.10, EUR 14.45 and GBP 11.17 per ounce
02 June: USD 15.98, EUR 14.27 and GBP 11.07 per ounce
01 June: USD 15.95, EUR 14.30 and GBP 11.04 per ounce

Buy Silver Coins VAT and CGT Free in UK

This update can be found on the GoldCore blog here.

Mark O'Byrne

IRL
63
FITZWILLIAM SQUARE
DUBLIN 2

E info@goldcore.com

UK
NO. 1 CORNHILL
LONDON 2
EC3V 3ND

IRL +353 (0)1 632 5010
UK +44 (0)203 086 9200
US +1 (302)635 1160

W http://www.goldcore.com/uk/

WINNERS MoneyMate and Investor Magazine Financial Analysts 2006

Disclaimer: The information in this document has been obtained from sources, which we believe to be reliable. We cannot guarantee its accuracy or completeness. It does not constitute a solicitation for the purchase or sale of any investment. Any person acting on the information contained in this document does so at their own risk. Recommendations in this document may not be suitable for all investors. Individual circumstances should be considered before a decision to invest is taken. Investors should note the following: Past experience is not necessarily a guide to future performance. The value of investments may fall or rise against investors' interests. Income levels from investments may fluctuate. Changes in exchange rates may have an adverse effect on the value of, or income from, investments denominated in foreign currencies. GoldCore Limited, trading as GoldCore is a Multi-Agency Intermediary regulated by the Irish Financial Regulator.

GoldCore is committed to complying with the requirements of the Data Protection Act. This means that in the provision of our services, appropriate personal information is processed and kept securely. It also means that we will never sell your details to a third party. The information you provide will remain confidential and may be used for the provision of related services. Such information may be disclosed in confidence to agents or service providers, regulatory bodies and group companies. You have the right to ask for a copy of certain information held by us in our records in return for payment of a small fee. You also have the right to require us to correct any inaccuracies in your information. The details you are being asked to supply may be used to provide you with information about other products and services either from GoldCore or other group companies or to provide services which any member of the group has arranged for you with a third party. If you do not wish to receive such contact, please write to the Marketing Manager GoldCore, 63 Fitzwilliam Square, Dublin 2 marking the envelope 'data protection'

GoldCore Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in