The price of gold has dropped 7% (-£65.23/ oz t) having pecked at its highest point since 2013 last Thursday. The latest Brexit poll indicated momentum is swinging in favor of remaining in the EU and with only 3 days to go until the referendum on 23rd June, we have seen gold plummet.
The outcome of Thursday’s referendum will most likely have a huge impact on the financial markets. Investor confidence has been swayed by public attachment towards Britain’s position in the EU. The pound has seen growth 4% against the dollar since Thursday while the FTSE has started the week strongly.
We have seen the public attachment towards the ‘leave’ campaign cool since the murder of MP Jo Cox and the growing want that Britain remains in the EU has reduced fears about the global impact of ‘Brexit’. We can see this in the falling value of gold in dollars which, combined with sterling’s resurgence, has seen gold fall from its 3-year high.
Bookmakers odds on a leave, which were under 2⁄1 and going towards evens on Thursday, have since swung out to over 3⁄1 and are drifting. This shows that, whilst ‘remain’ is looking more likely, a ‘leave’ vote is most certainly not ruled out.
The growing uncertainty and market volatility have kept BullionByPost extremely busy and nothing will be sure until the votes are counted at the end of the week. Financial markets are particularly sensitive at the moment and it would not be a surprise to see further back and fourths throughout the week.