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Gold Pares Early Gains from Brexit Date Announcement

October 3, 2016 at 17:19 by Andrew Moran

Gold pared its early gains to the start of the trading week. Gold had edged higher on the Brexit date announcement made by British Prime Minister Theresa May. It would then enter into negative territory, continuing the trend for the past several trading sessions.

December gold futures tumbled $3.60, or 0.27%, to $1,313.50 per ounce at 16:53 GMT on Monday. The yellow metal had risen 0.30% to start Monday’s trading session. Gold has been suffering immense losses since September 22 and posted its first quarterly loss of 2016. It was able to advance 0.4% last month.

Silver has also weakened as it dipped to under $19. December silver futures fell $0.26, or 1.40%, to $18.94 an ounce.

The losses are not greater because the Chinese markets are closed for the national holiday.

Financial experts are attributing gold and silver’s beating in the markets to positive economic data, a stronger US dollar, a Federal Reserve rate hike in December, and a likely Hillary Clinton presidential victory in November. Also, the recent positive news from Deutsche Bank helped shed gold’s value.

Precious metals had edged higher when the date of Great Britain’s exit from the European Union (EU) was confirmed on Sunday. The British prime minister confirmed that the government “will invoke Article 50 no later than the end of March next year.” This means Brexit could happen by early 2019.

That means that the United Kingdom will be an independent, sovereign nation. It will be making its own laws.

We will negotiate as one United Kingdom and we will leave the European Union as one United Kingdom. There is no opt-out for Brexit. I will never allow divisive nationalists to undermine the precious union between the four nations of our United Kingdom.

October could be a terrible month for gold. Gold bugs referred to the month as historically weak for the yellow metal as it has averaged a loss of 0.1% over the years.

If you have any questions and comments on the commodities today, use the form below to reply.

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