Trading news

XAU/USD: Brexit referendum was held, gold grows in the price _27/06/2016

Technical analysis and trading recommendations -
https://fxpcm.com/en/fx/xauusd-brexit-referendum-was-held-gold-grows-price27062016

Results of the referendum in the UK, according to which 51.9% of Britons voted for withdrawal from the EU (48.1% of Britons were against), has led to destabilization of the global financial markets and excessive demand for safe-haven assets, the yen and gold.

Gold futures surged to a two-year high. August gold futures on СОМЕХ finished trading with an increase of 4.7% at 1322.00 US dollars per ounce, showing the biggest one-day increase since September 2013. Price-spot with the opening of today's trading day on the gold held near the mark of 1323.00.

Despite the fact that since the beginning of the year the price of gold rose 25% amid concerns about growth prospects of the global economy and volatility in financial markets, the net long position in gold by hedge funds and other speculative investors kept at multi-year highs, according to Commission Commodity Futures trading.

Exit the UK from the EU increases uncertainty in the financial markets, which would deter the Fed from raising interest rates, and investors from gold sales.

In the context of increasing interest rates in the US Gold is under pressure as investment in the precious metal does not generate interest income and borrowing costs for its purchase and storage increases. In this situation, the dollar and the attractiveness of Treasury bonds from investors is growing, and gold - reduced, and vice versa.

The rise in gold prices is likely to continue. Some market participants expect the price of gold could reach $ 1,400 an ounce by the end of the year.
Only after the markets calm down, the United States will begin delivery of positive economic data and the Fed will return to consider the possibility of raising rates in the US, it is possible to revert to short positions in gold.

Monday, 27 Jun, 2016 / 12:05

Note: Company News is a promotional service of the Directory and the content isn't created by Finance Magnates.

Source : http://fxpcm.com/en/fx/xauusd-brexit-referendum-was-held-gold-grows-price27062016

Trading news

 

Weekly outlook: Bank of Canada, Bank of Japan, US GDP

Week gone by: China’s global influence grows, volatility falls You know [...]

Posted on Friday, 19 Apr, 2019 / 9:15 under

EUR down, USD up as global PMIs disappoint; US housing starts

Market recap EUR fell on the weaker-than-expected Eurozone preliminary [...]

Posted on Friday, 19 Apr, 2019 / 9:14 under

EUR Falls on Eurozone PMIs, USD Gains on Strong US Data

The euro came under selling interest yesterday, tumbling after another set of [...]

Posted on Friday, 19 Apr, 2019 / 7:26 under