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With the Brexit vote closing on Thursday, prices traded as high as $1,351.60 per ounce early Friday morning. That’s the highest price for the yellow metal in nearly two years.
Gold prices were up again this week, trading at $1,315.33 per ounce as of 11:49 a.m. EST. Prices gained 4.24 percent for the week overall.
With the Brexit vote closing on Thursday, prices traded as high as $1,351.60 per ounce early Friday morning. That’s the highest price for the yellow metal in nearly two years, according to Market Watch. Investors surged to buy the metal after the UK’s decision to leave the European Union.
With a 52 percent vote to leave the EU, the British pound dropped 11 percent to 1.33, marking levels that haven’t been seen since 1985. This helped give further support to gold.
In the coming weeks, some say the Brexit could push the gold price as high as $1,400 an ounce.
Similar to gold, silver prices rose steadily through the week due to the British referendum, reaching as high as $17.98 early Friday morning. Prices dropped slightly back down to $17.67 as of 12:00 p.m. EST, but overall, the white metal is up 2.02 percent this week.
In the base metals sector, comex copper prices increased 0.01 percent to trade at $2.10 per pound as of 12:00 p.m. EST. Despite seeing a price increase over the week, the metal dropped Friday as worries about economic growth rose following the referendum, as reported by Reuters.
Lastly, while spot oil prices were on the rise early in the week, they were down for the week overall, dropping drastically after the Brexit. Oil was down by 2.93 percent for the week overall to trade at $47.76 per barrel as of 12:50 p.m. EST.
In New York, oil prices fell about 5 percent after the UK vote, which sparked the possibility of the US dollar rallying from a three-month long recovery in global oil markets, according to Reuters.
Oil prices held above the previous week’s one-month lows, but some analysts say oil could face further pressure.
“Our view is that we have not yet seen the low oil price of the day with Brent likely to trade down towards $45 or lower before we have seen the worst of it,” Bjarne Schieldrop, chief commodity analyst at SEB, said in note to clients.
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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
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