Gold Gains On “Political Turmoil and Increased Uncertainty” Regarding Brexit – GoldCore
By: GoldCore
GoldSeek.com
Friday, 16 November 2018
Key Gold and Precious Metals News, Commentary and Charts This Week
Gold and silver have eked out slight gains this week as stock markets came under pressure due to concerns about tech and oil sector valuations, Italian banks and political and financial turmoil due to Brexit.
Gold is 0.65% higher for the week in dollars and has seen greater gains in euro (+0.8%) and the pound (+2.17%). The latter has fallen due to political turmoil in the UK and Brexit concerns.
The pound tumbled after UK Brexit Secretary Dominic Raab resigned. He was the highest-profile of several departures yesterday.
Brexit backer Jacob Rees-Mogg and Prime Minster contender later joined calls for a vote of no confidence in PM Theresa May. The turmoil throws into doubt her ability to secure the UK Parliament’s support for her exit plan – and even to survive as leader.
Bookies have made the left wing Labour leader Jeremy Corbyn the favourite to take over from Mrs May – who they give 4/5 to be out before the end of 2018. This will further pressure the pound and should see gold reach new record highs in sterling terms in the months.
Stocks in the U.S., Europe and Asia are lower for the week with U.S. stocks being particularly weak. The S&P, DJIA and Nasdaq are down 2.1%, 3% and 2.8% respectively.
Oil prices have bounced a bit higher but have collapsed nearly 12% (WTI) so far in November which suggests there may be concerns about oil demand and economic growth in the coming months.
It was an important week for GoldCore as we launched the first institutional-grade gold vault in Ireland. Irish, UK and international investors can for the first time store gold bullion bars and coins in professionally managed, secure, institutional grade vaults in Dublin.
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