Gold Lower as Risk Back On After Brexit Polls Point to Remain

Gold prices are moderately lower in early U.S. trading Monday, as investor risk appetite has up-ticked to start the trading week. Some profit taking from recent gains is also weighing on the yellow metal. Last week gold prices hit a two-year high. August Comex gold was last down $9.00 an ounce at $1,285.80. July Comex silver was last up $0.009 at $17.41 an ounce.

World stock markets were mostly higher overnight and U.S. stock indexes are pointed to solidly higher openings when the New York day session begins. Focus is squarely on Thursday’s U.K. vote on whether that country stays in or leaves the European Union. The latest polls show a slight lead for the “stay” camp, and that’s causing world stock markets to rally Monday. However, the polls are close, which is still causing some uncertainty and anxiety in the marketplace, and will continue to do so until Thursday’s vote. A U.K. vote to leave the EU would likely create high uncertainty and tensions in world stock, currency and financial markets. Thursday’s vote could be the most important world markets event of the summer.

The key “outside markets” on Monday find the U.S. dollar index lower and Nymex crude oil prices higher. That’s a bullish daily factor for the stock and commodity markets.

There is no major U.S. economic data due for release Monday.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza