UK Pound Collapses 38% Versus Gold and 56% Versus Silver Year To Date

Tuesday, August 16, 2016
By Paul Martin

By: GoldCore
GoldSeek.com
Tuesday, 16 August 2016

Gold in UK pounds neared its post-Brexit high overnight as sterling fell sharply on currency markets due to concerns about rising inflation as shown in data today and the outlook for the UK economy.

Gold is up nearly 4% in sterling terms in August and by a whopping 38% year to date. ‘Sterling silver’ has surged by even more this year and is now 56% higher in sterling terms year to date.

Sterling gold’ rose or to put it more accurately, sterling fell to £1,045/oz in gold terms – not far from its post-Brexit low of £1,057/oz. The currency has lost more than 2 percent this month versus the dollar, the worst performance among major currencies and nearly 4% against gold.

Sterling hit a 6-1/2-year low against a basket of currencies and Monday’s close against the dollar of $1.2880 was the weakest since June 1985.

Gold in UK pounds surged 20% in the immediate aftermath of Brexit and after a needed correction, has consolidated and is moving higher again. ‘Sterling silver’ surged by even more and is now 56% higher in sterling terms this year showing silver’s currency hedging properties.

UK inflation data showed that the weaker currency led to higher domestic prices after June’s shock vote to leave the European Union.

The Rest…HERE

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