Gold fell again today despite very robust physical demand in western markets and especially the UK. Gold fell to a ten-day low as the recent global share rally showed signs of exhaustion.
Expectations that Britain could vote to leave the European Union in Thursday’s referendum have receded somewhat but remain and this is leading to very significant UK gold demand.
Over the last 5 days, we have had record demand from both Irish and UK retail and high net worth clients acquiring bullion in advance of the important poll. Other bullion dealers in the UK and indeed mints are reporting similar surging demand.
The Royal Mint has seen demand for gold “rocket” as investors seek sanctuary in safe haven gold due to increased volatility in stock and fx markets and concerns about the outlook for the UK economy and sterling (see News).
Two opinion polls yesterday showed the “Remain” camp had recovered some ground in the referendum debate though a third poll found those wanting to leave were ahead by a whisker.
As ever, speculative money in the futures market appears to be dictating gold prices in the short term. We expect the very robust physical demand will lead to a sharp bounce in gold prices in the medium term. We are hearing of increasing illiquidity in the inter-bank gold market and will look at this in more detail tomorrow.
Gold and Silver News
UK gold bullion demand surges in run-up to EU referendum (Guardian)
Demand for gold rockets in UK as investors seek stability (Belfast Telegraph)
Gold slips ahead of Britain’s vote on EU membership (Reuters via CNBC)
Gold extends downturn, Yellen to address Congress (Bullion Desk)
Gold edges up on softer dollar; Brexit concerns ease further (Reuters)
It’s Francs, Gold If U.K. Goes and Euros, Sterling If It Stays (Bloomberg)
Investors Flee to Gold as Brexit Looms (Video) (Bloomberg)
UK Referendum: What you need to know about the EU (Professor Werner)
What Brexit Is All About: Taxation (and Regulation) Without Representation (Gold Seek)
Worst Yet to Come – Generational Chaos Ahead – Mauldin Economics
Read More Here
Gold Prices (LBMA AM)
21 June: USD 1,280.80, EUR 1,129.67 and GBP 866.72 per ounce
20 June: USD 1,283.25, EUR 1,132.08 and GBP 877.49 per ounce
17 June: USD 1,284.50, EUR 1,142.05 and GBP 899.41 per ounce
16 June: USD 1,307.00, EUR 1,161.14 and GBP 922.01 per ounce
15 June: USD 1,282.00, EUR 1,141.49 and GBP 903.04 per ounce
14 June: USD 1,279.40, EUR 1,140.84 and GBP 904.79 per ounce
Silver Prices (LBMA)
21 June: USD 17.36, EUR 15.34 and GBP 11.78 per ounce
20 June: USD 17.34, EUR 15.30 and GBP 11.85 per ounce
17 June: USD 17.37, EUR 15.43 and GBP 12.19 per ounce
16 June: USD 17.71, EUR 15.79 and GBP 12.54 per ounce
15 June: USD 17.41, EUR 15.51 and GBP 12.26 per ounce
14 June: USD 17.25, EUR 15.37 and GBP 12.17 per ounce
Recent Market Updates
– Gold Surges to $1,313/oz – Fed Concerned Re Outlook, BREXIT and May “Consider Using Helicopter Money”
– Gold Prices Higher For 5th Session On BREXIT and FED
– Gold In Euros Surges 6.5% In June and 17% YTD On BREXIT Concerns
– Soros Buying Gold On BREXIT, EU “Collapse” Risk
– UK Gold Demand Rises On BREXIT “Nerves”
– Pensions Timebomb in “Slow Motion Detonation” In UK, EU, U.S.
– Silver – Perfect Storm Brewing in the Market
– Martin Wolf: There Will Be Another “Huge” Financial Crisis
– Silver Price To Surge 800% on Global Industrial and Technological Demand
– BREXIT Gold Diversification As Vote Fuels Market Uncertainty
– Gold Forecasts Revised Higher – Citi Says “Buy the Dip”
– World’s Largest Asset Manager Suggests “Perfect Time” For Gold
