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Re: NYBob post# 909

Tuesday, 01/17/2017 10:19:42 AM

Tuesday, January 17, 2017 10:19:42 AM

Post# of 3048
GOLD RUSH: Gold prices SOAR ahead of May's Brexit speech as markets set for usual panic

Jan 17, 2017

The precious metal is now sitting at $1,212, as prices continue to creep up from $1,165 at the start of the year.

Experts said prices could rise towards $1,250 as Theresa May outlines plans to leave the European Union (EU) in a speech today.

Gold is considered a safe home for money by investors, and prices typically rise during times of volatility and uncertainty - values reached record highs of $1,900 during the financial crisis.

Current price rises come amid high turbulence in currency markets, sparked by emerging details of Brexit.

The Prime Minister is expected to confirm Britain will leave the single market in a 'clean' exit from the EU.

The news has this week pushed the pound down to its lowest level against the dollar since the 'flash crash' in October.

Naeem Aslam, chief market analyst at Think Markets, said: "The volatility in the currency market has skyrocketed once again especially for Sterling where one-month volatility is touching a level which we have not seen since the Bank of England cut the interest rate to save the UK economy.

"The precious metal is clearly is the beneficiary of this risk off appetite and traders are building their hedge.

"There is simply too much fear in the market and investors are uncertain about Theresa May’s ability to deliver an outcome which can save the job market."

"The odds are that she is going to divide the country more in her effort to unite the country- her stance of hard Brexit will please Brexiteers and dismay Remainers.

"This may help the gold price further and we could see the metal surging towards 1250 mark."

Gold prices reached highs of $1,372 in August last year after the Bank of England cut interest rates in reaction to the Brexit vote.

And values could continue to rise this week ahead of Donald Trump's inauguration on Friday.

Mr Aslam said: "We have US inauguration ceremony and hopes are that Donald Trump will be able to satisfy the bulls that his fiscal spending and tax reform plans will soon become a reality.

"The expectations are so high that we think there are greater chances that traders may feel that they did not get what they bargain for.

"Under such a scenario, we could see the gold continue its rally."

http://www.express.co.uk/finance/city/755124/Gold-prices-surge-ahead-of-Theresa-May-s-Brexit-speech
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