Gold’s standing as a safe haven investment was strengthened overnight as the fallout from the Brexit vote swept the financial landscape. The final vote to leave came as a surprise to many as yesterday’s polls indicated a narrow victory for the “stay” vote.
Gold prices spiked above $1350 overnight, the highest level since March 2014. This sharp rise is no surprise when you read the following Brexit Vote financial highlights (or lowlights depending on your point of view):
- The pound hit its lowest level since 1985, tumbling 11 percent before a slight recovery to trade 8 percent lower at $1.3704.
- Britain’s FTSE 100 dove about 8 percent but recovered slightly for a 5 percent loss
- Oil prices tanked, with the U.S. benchmark $2.24 lower at $47.87 a barrel
- The German index down 7 percent
- France’s index fell about 9 percent.
- The Nikkei 225 closed down 8 percent, its biggest dive since the global financial crisis in 2008.
- Five minutes after US markets opened, the S&P 500 had lost 1.6pc, Dow Jones traded 2.87pc lower and 3.25pc was wiped off Nasdaq – its worst drop since November 2011.
Needless to say, we are in the early stages of the aftermath of this momentous breakup. With the British PM David Cameron stepping down and Scotland eyeing ways to declare independence, it’s obvious this political upheaval will not calm down any time soon.
We will be back on Monday with more insights and data as we take a deep breath and watch for ANY of the dust to settle over the weekend.
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