Gold Prices Surge to Highest Level in Nearly Two Years On Central Bank and Brexit Haven Demand
By: Mark O’Byrne
GoldSeek.com
Friday, 17 June 2016
Gold prices soared to their highest level in nearly two years yesterday on BREXIT concerns and deepening concerns that central banks are slowly losing control of the financial and monetary system.
Gold subsequently fell quite sharply below the key $1,300 level but remains roughly 1% higher for the week in all currencies and is on track for its third week of gains.
Ultra loose monetary policies are set to get even looser as the Federal Reserve confirmed zero percent interest rate policies are set to continue and negative interest rates deepened as Germany became the latest bond market to experience negative rates.
The backdrop of the most uncertain geo-political and economic conditions in many years is also leading to safe haven demand which pushed gold to the highest level since August 2014 touching $1,315/oz.
Sharp falls in European and Asian stock market indices this week and this year (see Table above) is also contributing to the precious metal gains. U.S. stock market indices remain buoyant for now but the fundamentals of the U.S. stock market continue to deteriorate and we look set to see a very significant correction or indeed worse in the coming months.
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