By Staff writer
Investors bullish about cost of precious metal in wake of Brexit vote
Investors expect the price of gold to climb higher this week following Britain’s decision to leave the EU.
More than seven in ten analysts, traders and market professionals were bullish about the precious metal, according to a survey.
Gold is currently trading at almost 2 percent higher in Dubai than a week ago.
And the latest Kitco gold survey revealed 73 percent of responders said the price would go up, reported Gulf News.
“Following the initial surge, gold has settled into a $30 range so far,” said Ole Hansen, head of commodity strategy at Saxo Bank. “On Monday, the CME, in response to the spike in volatility, raised the margins for initiating and holding a position in Comex gold futures by 22 percent.
“This meant that hedge funds holding portions of the present record long position had to deposit more than $250 million in additional margin. This helped trigger some light profit-taking, but so far gold has managed to find support at $1,305 [an ounce], the previous high and now the 50 per cent retracement of the spike seen on Friday.
“We maintain the view that gold has made a $50 to $70 shift higher in range, which should see it attempt to making it back towards $1,400 an ounce, the 2014 high.”