Gold In Sterling Up 1.7% On BREXIT Jitters - Surges 10% In June

Gold in sterling has risen another 1.7% today due to deepening BREXIT jitters with just 10 days left until the referendum on June 23. The flight to gold and sell off in sterling came as Asian and European stock markets fell and European equities headed for their lowest close since February.

Gold in sterling has risen from £892.50/oz to £908/o today. The shiny yellow is up 10% in the first nine trading days of June, from £827 to £908/oz, as investors diversify into safe haven gold due to concerns Britain will vote to leave the European Union.



A series of BREXIT opinion polls over the weekend strongly suggested Britain could vote to leave the EU, which many fear will likely lead to a fresh wave of turmoil across markets internationally and heightens the real risk of the break-up of the European Union.

Sterling weakened against all of its 16 major peers after polls showed the referendum on whether Britain will stay in the EU may see a BREXIT outcome. The pound fell to an eight week low against the US dollar…and a three year low against the yen as jittery investors shifted into perceived safer fiat currencies.

The Stoxx Europe 600 Index dropped 1.5 percent, the FTSE was down 0.8%, the DAX 1.2% and the CAC 1.4%.

Stock markets in Japan dived to a two- month low…with the benchmark Nikkei 225 index slumping 3.5%. In Hong Kong, the Hang Seng Index fell 2.54%, while in China, the Shanghai Composite lost 0.78% and the Shenzhen Index fell 1.1%.

S&P500 futures fell 0.5 percent, indicating U.S. equities will extend declines after Friday dropping the most in three weeks amid concern over tepid growth and potential further market turbulence.

The mass shooting in Orlando (Florida) and deepening concerns about terrorism will not help market sentiment and will support gold. Deepening social and geopolitical tensions in the United States and the most uncertain political outlook for many years are also contributing to demand for gold.

A Brexit vote on June 23 could see gold prices quickly surge to $1,400, analysts at Capital Economics Ltd. said in a report on Friday.