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Marine2on Jun 23, 2016 3:53pm
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Gold Ends Lower; Risk-On Marketplace Just Ahead Of Brexit Re
Gold Ends Lower; Risk-On Marketplace Just Ahead Of Brexit Re
Gold Ends Lower; Risk-On Marketplace Just Ahead Of Brexit Results
Thursday June 23, 2016 13:56 (Kitco News) - Gold prices ended the U.S. day session moderately lower and hit a two-week low Thursday. Risk appetite in the marketplace is on the upswing this week, which has been bearish for safe-haven gold. The highly anticipated Brexit vote is taking place today, with most believing the U.K. will stay in the European Union. August Comex gold was last down $6.30 an ounce at $1,263.60. July Comex silver was last up $0.028 at $17.34 an ounce.
Traders and investors reckon U.K. voters will elect to stay in the European Union—despite some polls that are very close on the U.K. staying or leaving the EU. However, London bookmakers show odds are 80% that voters will opt to stay in the EU. A U.K. vote to leave the EU would surprise the marketplace and likely create high uncertainty and tensions in world stock, currency, commodity and financial markets. Results of today’s vote should start to trickle in late Thursday evening, U.S. time.
Interestingly, reports are saying that some currency trading desks around the world have said they will not accept or honor stop-loss orders on trades starting late Thursday into Friday. That suggests more than just a few market watchers and brokers are worried about extreme price volatility that could occur in the wake of the Brexit vote results. Even the “smart money” in the markets is worried about the events that will unfold the next 24 hours—even though the bookies place high odds on the “stay” vote winning.
The key “outside markets” on Thursday saw the U.S. dollar index weaker and hitting a seven-week low as the greenback bears have downside momentum. Nymex crude oil prices were firmer and trading just below $50.00 a barrel.