| The recent narrowing of the Brexit polls has sparked retail gold buying in the UK, according to data from the GFMS team at Thomson Reuters. Additional expectations for precious metals around the EU Referendum follow below: Market uncertainty, such as the conditions experienced around Brexit, is likely to benefit the price of safe havens, crucially the U.S. Dollar and gold.
A more difficult call at this juncture is whether gold or the U.S. Dollar is seen as the chief beneficiary, with the latter being the case in the Greek crisis in 2011. On balance, GFMS expect gold to gain even in Dollar terms as any strength in the U.S. Dollar for this reason will lessen the chances of any imminent U.S. interest rate rises as the Fed would rapidly become concerned about the adverse trade effects of these exchange rate movements...............................................Full Article: Source
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