Gold Ends Slightly Lower; Brexit Vote On Deck

(Kitco News) - Gold prices ended the U.S. day session slightly lower Wednesday and notched a two-week low overnight. Some profit taking and position evening were featured. This week’s better risk appetite in the marketplace has been a negative for safe-haven gold. However, with Thursday’s Brexit vote looming, look for sellers in the gold market to become scarce until at least Friday morning. August Comex gold was last down $1.60 an ounce at $1,270.90. July Comex silver was last down $0.009 at $17.31 an ounce.

Thursday’s Brexit vote could be the most important world markets event of the summer. There has been increased risk appetite in the marketplace this week due to polls showing Thursday’s U.K. vote on whether that country stays in or leaves the European Union favor the “stay” camp. However, the polls are close, which is still causing a bit of uncertainty in the marketplace, and will continue to do so until Thursday’s vote. The vote’s results should be available sometime later Thursday evening, U.S. time. London bookmakers are saying the odds are about 75% the U.K. will stay in the EU. A U.K. vote to leave the EU would likely create high uncertainty and tensions in world stock, currency and financial markets.

The key “outside markets” on Wednesday saw the U.S. dollar index weaker as the greenback bears are gaining downside momentum this week. Nymex crude oil prices were also weaker and trading back below $50.00 a barrel.

Courtesy: Kitco News