Gold heads south as Brexit fears fade
On Thursday, gold prices headed south, thus reversing overnight revenues, because concerns over Great Britain’s shock decision to leave the EU abated, decreasing demand for safe-haven assets.
In New York, August delivery gold futures lost 0.64%, trading at $1,318.30 per troy ounce. By the way, yesterday, prices edged up 0.68%.
Prices of the number one precious metal soared to a 27-month high of $1,362.60 last Friday, right after the UK’s shocking decision to exit the EU. Because of this investors turned to bullion as well as other safe haven assets.
The news raised worries that other countries might leave this trading bloc and global growth would come under considerable pressure, while the actual timeframe of Britain’s departure from the European Union is still uncertain.
However, Great Britain has invoked Article 50 yet, the treaty measure, which would start the two year deadline for Great Britain to leave the EU.