As an after-shock of Brexit (Britain voting out of the European Union) spot gold prices witnessed a hike of over one percent on Monday providing some relief to the investors.
Aftershocks of Brexit
The after-shocks of Brexit also observed resignation of Prime Minister David Cameron, and the state dealt with one of the biggest blows post World War 2.
British Finance Minister had already warned investors regarding economic volatility post ‘Brexit’. In a later statement issued this Monday, British Finance Minister George Osborne reassured residents about financial stability.
Hike in Gold Market
As a result, spot gold prices climbed by 1.30% to $1,332.55 per ounce and touched a spike of $1,335.30 in the day. Bullion rate also surged by 4.8% in the last session and topped at $1,358.20; it is the highest margin touched since 2014. The gold market of U.S. also witnessed a hike of 1% to $1,336.90 per ounce on Monday.
As per ANZ analyst Daniel Hynes, the gold market will remain active over the midterm and predictions estimate a hike of $1400 in the gold market for upcoming one-two weeks.
However, as per the experts market scenario will become apparent once after some time as the situation will settle down and the market will gain a constant pace. At the same time, Asian stock market continued progressing with a weaker start, along with British pound witnessing a drop of 2% in the Asian trade, this Monday.
