Friday, June 24, 2016

Gold pops $85 on Brexit vote while currencies and markets in chaos

June 24 is now a new red letter day in Britain's history as the people chose to Brexit versus remaining as a subject nation in the European Union.



By a relatively close, but decisive vote, Britain has begun the process of becoming the first European Union country to leave the coalition, and has triggered not only financial chaos in currencies and markets, but has opened the door for nations like France and Scotland to call for their own independence referendums in the wake of the British Exit.

As expected, gold was the number one safe haven along with the dollar, as the metal shot up $85 when news of the exit vote hit.  In addition, the Pound Sterling fell to 30 year lows against the dollar, and the Euro dropped 500 bps in a single instant.

Gold has now crossed a major resistance level over $1308, and with geo-political turmoil such as Britain's Prime Minister David Cameron officially announcing he will resign in the fall, the monetary metal should have a clear path to $1450 per ounce in the coming weeks.

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