UK leaving European Union – Gold breaks out

Quick summary of key ccy pairs as the Brexit result is confirmed

GBP/EUR 1.22 (down 6.4%)

USD/EUR 1.098 (down 3.5%)

GBP/USD 1.35 (down 9.5%)

XAU/USD 1335 (up 5.5%)

XAU/GBP 985 (up 15.5%)

XAU/EUR 1200 (up 9%)

FTSE expected to open 8% lower

Gold in sterling enjoying the double whammy of being a safe haven asset and diversifier for sterling based investors. Today will be an important day for gold when we see how the big consumer countries such as India and China react to significantly higher prices in their own currencies….will they take advantage of the unexpected profit or will they hold on to positions and look for the XAU market to adjust to a new level. I suspect the latter.

Matthew KeenUK leaving European Union – Gold breaks out