10
Jan
2017

Gold Price In GBP Up 4% On Brexit and UK Risks

Gold Price In GBP Rises 4% On Brexit and UK Economy Risks

– Pound fell 2% against gold yesterday after Theresa May created Brexit concerns 

– May’s ‘Hard Brexit’ denial does not calm markets growing fears

– Investors concerned about lack of government strategy and uncertainty

– UK Prime Minister bizarrely blames media and “those who print things” for sterling depreciation

– GBP gold builds on 31% gain in 2016 with 4% gain so far in 2017

gold-price-in-gbp-2017Gold in GBP – 1 Year and Timeline (GoldCore)

1. June 24: Brexit: Gold surged 20% in sterling to £1,015/oz in two days after UK votes to leave EU
2. August 4: Bank of England expands QE – launches latest massive money printing experiment
3. October 6: “Flash crash” — pound collapses 5% against gold in just over a minute
4. January 9: Pound falls another 2% against gold as UK PM fails to reassure markets


Gold rose to its highest in over one a month today as fears that the UK will have a ‘Hard Brexit’ with the EU led to safe-haven buying.

The pound fell sharply yesterday and gold in sterling terms rose from £954/oz to £973/oz after weekend comments from British Prime Minister Theresa May sparked concerns that Britain would drastically change trade, immigration and other relations with the EU after Brexit.

Gold has consoidated on those gains today and is over 4% higher in sterling terms so far in 2017 – building on the 31% gains seen in 2016.

The gains being seen are not simply related to Brexit. There are also substantial risks facing the UK economy in terms of the London property bubble (which shows signs of bursting), the very large UK current account deficit and the massive UK national debt.

Spot gold in dollar terms rose another 0.5% today to $1,187.60 an ounce, its highest since Dec. 5 at $1,187.61

There is also strong physical  gold buying in China ahead of the Lunar New Year later in January.

Gold looks set to test $1,200 in the short term. In the coming days, attention will turn to U.S. President-elect Donald Trump’s inauguration and the geo-political and economic uncertainty regarding the next four years of his Presidency. This will likely further boost safe haven demand.

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Gold and Silver Bullion – News and Commentary

Gold near 5-wk highs on weaker dollar, Brexit concerns (Reuters.com)

Gold hits fresh 6-week highs, then retreats (FXStreet.com)

U.S. Stocks Retreat, Treasuries Advance With Gold (Bloomberg.com)

Gold prices edge up; PGMs firm (BullionDesk.com)

Prince left behind $25 million in real estate, a cash horde, and 67 gold bars (StarTribune.com)

7RealRisksBlogBanner

Gold: Getting There A Little At A Time (DollarCollapse.com)

Why modern monetary policy doesn’t work – the models it uses are horribly out of date (MoneyWeek.com)

Predicting a monetary hurricane (AgoraEconomics.com)

Era Of Cheap Money Is Ending: “This Is The Calm Before The Storm” (ZeroHedge.com)

2016: The Year Outsiders Said: “Enough!” (DavidMCWilliams.ie)

Gold Prices (LBMA AM)

10 Jan: USD 1,183.20, GBP 974.60 & EUR 1,118.12 per ounce
09 Jan: USD 1,176.10, GBP 968.75 & EUR 1,118.59 per ounce
06 Jan: USD 1,178.00, GBP 951.35 & EUR 1,112.27 per ounce
05 Jan: USD 1,173.05, GBP 953.55 & EUR 1,116.16 per ounce
04 Jan: USD 1,165.90, GBP 949.98 & EUR 1,117.40 per ounce
03 Jan: USD 1,148.65, GBP 935.12 & EUR 1,103.28 per ounce
30 Dec: USD 1,159.10, GBP 942.58 & EUR 1,098.36 per ounce
29 Dec: USD 1,146.80, GBP 935.56 & EUR 1,094.85 per ounce

Silver Prices (LBMA)

10 Jan: USD 16.66, GBP 13.73 & EUR 15.76 per ounce
09 Jan: USD 16.52, GBP 13.57 & EUR 15.69 per ounce
06 Jan: USD 16.45, GBP 13.30 & EUR 15.54 per ounce
05 Jan: USD 16.59, GBP 13.47 & EUR 15.80 per ounce
04 Jan: USD 16.42, GBP 13.36 & EUR 15.74 per ounce
03 Jan: USD 15.95, GBP 12.97 & EUR 15.34 per ounce
30 Dec: USD 16.24, GBP 13.20 & EUR 15.38 per ounce
29 Dec: USD 16.06, GBP 13.10 & EUR 15.36 per ounce


Recent Market Updates

– 2016 Past is 2017 Prologue
– Gold Gains In All Currencies In 2016 – 9% In USD, 13% In EUR and Surges 31.5% In GBP
– Trump’s Twitter “140 Characters” To Push Gold To $1,600/oz in 2017?
– 2017 – The Year of Banana Skin
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Mark O'Byrne
Executive Director