Gold Price Today Surges to Two-Year High After Brexit Vote

Wyckoff: $1,308 Gold Price Possible Post-FOMC

By Peter Krauth, Resource Specialist, Money Morning June 24, 2016

The gold price today (Friday, June 24) rocketed past the $1,300 mark after the results of the Brexit vote sent global markets into a wild tailspin.

As of 1:35 p.m., gold prices were up 4.6% to $1,321.10. That puts the yellow metal on track for its largest one-day gain since February and its highest close since August 2014.

The results of the UK referendum are now clear Britain has voted to leave the EU. And while the price of gold is benefiting the most from the controversial decision, markets around the world are in turmoil.

European markets all plunged on the news. The UK"s main stock index, the FTSE 100, fell 3.2% on the day, while Germany"s and France"s main indices were down 6.8% and 8%, respectively. Here in the United States, the Dow Jones Industrial Average is down 2.8%.

It"s clear the Brexit will be all everybody talks about in the coming weeks. Today, I"m going to discuss where we can expect gold prices to move in the wake of this massive frenzy.

First, here"s a recap of the gold price"s wild week

Gold Price Today Soars Following Lackluster Week

The price of gold kicked this past week off with a session of volatility. On Monday, June 20, prices fell 0.1% to close at $1,290.

Gold"s headwinds blew even stronger the following day. The metal immediately dropped by nearly $20 to $1,271 when markets opened. Gold prices eventually closed at $1,268 and logged a loss of 1.7%.

Wednesday was more of the same, though less dramatic. Gold traded flat throughout the day and closed just 0.2% lower at $1,266.

For comparison, here"s how the U.S. Dollar Index (DXY) has been trading this week

Notice how both the price of gold and the U.S. dollar declined on Wednesday. Remember, this kind of short-term behavior where both move in tandem is not typical.

This pointed toward an easing of fear regarding the likeliness of the Brexit vote producing a win for the "Leave" side.

Yesterday, the polls opened and British citizens voted on whether or not their country would leave the EU. During the day, gold prices trended lower and closed at $1,263.10 for a 0.2% loss. Again, this movement showed how investors were anticipating the country to remain in the bloc.

Then, the UK shocked the world with a Brexit, sending the gold price today to its highest level since 2014.

With today"s rally, investors want to know if gold prices will maintain these gains in the coming months.

Here"s my specific gold price target following the Brexit results

Despite the Rise in the Gold Price Today, This Is Where It"s Headed

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About the Author

Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it"s in gold, silver, oil, coal, or even potash.

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Source: http://moneymorning.com/2016/06/24/gold-price-today-surges-to-two-year-high-after-brexit-vote/

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Goldman Sachs raises gold price forecasts for near-term, 2016-18

Gold Price $1300: 3 Taps and Out?

ByReuters

Published: 14:18 EST, 24 June 2016 | Updated: 14:18 EST, 24 June 2016

June 24 (Reuters) - Goldman Sachs raised its average price forecasts on Friday for gold in the near-term, the full year as well as 2017 and 2018, saying Britain"s vote to leave the European Union suggested a more sustainable impact on the trajectory of U.S. interest rates.

Goldman raised its gold price targets to $1,300, $1,280 and $1,250 per ounce on a 3, 6,and 12-month basis, from $1,200, $1,180 and $1,150, respectively.

The bank also raised its average forecasts to $1,260, $1,261 and $1,250 per ounce, from $1,202, $1,150 and $1,150 for 2016, 2017 and 2018, respectively.

U.S. short-term interest rate futures rose to contract highs in early U.S. trading on Friday after Britain"s vote, spurring traders to expect the Federal Reserve may cut interest rates to help shield the economy from any global fallout.

Gold soared as much as 8 percent to its highest in more than two years after Britain delivered the shocking vote, and the price of copper and other industrial metals fell on worries over the vote"s impact on economic growth.

"As the fundamental impact on industrial commodities of a leave vote is expected to be extremely small, this price action is consistent with our view of a stronger dollar putting downward pressure on commodities despite supportive fundamentals in some key markets like energy," Goldman analysts said in a note to clients.

"However, the ultimate trajectory will depend on the intensity and duration of the uncertainty shock created by the leave outcome, and any potential revisions to the U.S. growth outlook, both of which remain highly fluid in the current context," the analysts said. (Reporting by Nallur Sethuraman in Bengaluru; Editing by Bernadette Baum)

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Source: http://www.dailymail.co.uk/wires/reuters/article-3658974/Goldman-Sachs-raises-gold-price-forecasts-near-term-2016-18.html

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