The looming Brexit voting process is affecting the gold prices all over the world as we speak. Investors are becoming more nervous than ever before. With the Brexit vote taking place in a few days, the whole world is watching how this event will unfold. Gold futures have dropped already, and the overall price for gold has lost over US$50 per ounce in the past week.
The Brexit referendum is keeping the world in its grip for the time being. Whether or not the UK will leave the EU, will be revealed in roughly 48 hours from now. Until we know the result, there will be a lot of fidgeting by investors and traders all over the world, though. For the time being, this seems to be affecting the gold markets in a negative manner.
Brexit Sparks Gold Value Potential
If the Brexit were to happen as most people anticipate, it would send a shockwave through the financial markets. The effects may only last for a few days or weeks, though, but it will shake up a lot of things for sure. Investors are on the fence as to whether or not they see the gold value going up or down as a result.
Interestingly enough, the people who feel Britain will remain part of the EU are the ones causing the price decline for gold. If the Brexit is rejected, there does not seem to be a good reason for selling gold at low prices. In fact, the precious metal is positioning itself for a “significant buy” following the outcome on June 23rd.
This is what makes the trading world so interesting. Every weakness creates an opportunity for others. When the gold price declines, other buyers are waiting for the right moment to strike. Vaultoro lets users buy gold with ease, and they can use it to trade against Bitcoin as well. Both stores of value have an enormous potential to increase in price over the next few years.
Financial experts expect the value of gold to break through the US$1,300 barrier in the coming weeks. It would not be the first time for the precious metal to surpass that threshold. Gold touched the US$1,300 per ounce value earlier in June, yet things have dropped a bit ever since. At the time of writing, one troy ounce of gold was worth roughly US$1,280.
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