Gold continues to impress, and hit a high of $ 1,357 on Monday, near its highest level in two years. Gold has been one of the big winners of the Brexit consultation, as financial markets fell sharply after the surprising news that Britain had voted to leave the European Union. Gold advantage of the chaos, arising a remarkable 7.1 percent immediately after Brexit vote. In June, the metal rose some 8.8 percent, and the continuing uncertainty in the markets could mean that gold prices will continue to move upward.
The vote Brexit to leave the European Union is having global ramifications and finished with a staggering $ 3 trillion from equity markets. nervous investors are turning to safer as gold and the Japanese yen, at the expense of riskier assets assets. The pound, which has shed 11 percent since the vote, recorded heavy losses on Tuesday and is trading at 31-year lows. British politicians have tried to calm public opinion and the markets, but the free fall of the pound stressed that the situation is anything but normal. political situation the country is in the process of change, as the Conservatives are choosing a new leader to replace Prime Minister Cameron and elections can go ahead in the year. In the financial sphere, the pound has taken a beating and London's position as a global financial center could be in danger. Last week, the normally even-keeled governor of the Bank of England, Mark Carney, was surprisingly strong, indicating that the Bank of England planned to lower interest rates during the summer, and this only pressure on the battered sector added financial UK.
Britain could have voted "out", but there is no timetable for when the output will be held or what kind of trade agreement will define the new economic relationship between the EU and Britain. British leaders are in no hurry to leave, but European leaders have called for Britain to leave as soon as possible in order to minimize uncertainty and instability caused by the vote Brexit. When it comes to the EU, Britain is in limbo ( "neither in nor out"), and political and economic instability triggered by Brexit could continue to weigh on the currency markets and raw materials for the foreseeable future materials.
market focus on whether the Fed could raise rates understandably has moved into the background as the vote Brexit in late June. The historic referendum has had economic repercussions worldwide, including the US .. What will be the effect on monetary policy Brexit? It may be too early too say, but some analysts are forecasting that the Fed could change its monetary stance and lower rates made this year. Markets will be very interested in the minutes of the Fed, which will be released on Wednesday, despite that preceded the vote Brexit. Fed Chairman Janet Yellen and her colleagues have sounded cautious about the US economy and financial instability caused by Brexit could delay any rate hikes until 2017. The US economy is in good shape, but the Fed has not raised rates since last December and is unlikely to seriously consider rate hikes unless the employment and inflation figures point upwards.
/ USD XAU Basics
Tuesday (5 July)
10:00 Factory orders in the United States. -0.8% Estimate. Real -1.0%
10:00 IBD / TIPP economic optimism. 49.3 estimate. 45.5 reais
14:30 US FOMC Member Dudley Speaks William
Upcoming key events
On Wednesday (July 6)
10:00 ISM non-manufacturing PMI. 53.3 estimate
14:00 US Minutes of FOMC meeting
* Key Announcements are highlighted in bold
* All times are EDT release
XAU / USD for Tuesday July 5, 2016
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