The following is a market update as it related to precious metals prepared by SchiffGold intern commodities analyst Jason Mezhibovsky.
Last week, the Federal Reserve released the minutes from its Federal Open Market Committee meeting earlier this month. There weren’t any big surprises. The FOMC indicated that it would continue to take a “patient” approach to its monetary policy, basically stating that it is in no rush to adjust the policy either way for now.
Fed officials seemed to agree that this “do-nothing with interest rates” approach could continue for “some time.”
European funds now hold 1,121.4 tons of gold.
The WGC pinpoints three primary drivers of European gold investment.
As uncertainty swirls around Brexit and exactly what that will mean for the economy, Brits have been hoarding gold.
We have seen a significant increase in demand for gold this month and at the end of last year, a trend which we have no doubt is largely attributed to Brexit turmoil and subsequent market volatility.”
Northern Irish investors are buying gold and lots of it as a safe-haven in the midst of Brexit uncertainty.
Merrion Vaults, a leading Irish supplier of gold and precious metals storage services, said the number of clients from Northern Ireland purchasing and storing gold in the Republic of Ireland has increased by 70% this year.
The price of gold in pounds spiked Monday as Brexit confusion and political instability sent Brits scampering into safe havens.
Spot gold against the pound rose nearly 1% after Brexit Minister David Davis and British Foreign Minister Boris Johnson both resigned their posts in protest.
Business Day described Brexit as a “ramshackle exit from the EU,” as a European Central Bank policymaker warned it could damage economic growth in the eurozone.
What did Brits do before the recent elections in the UK?
They bought gold.
According to the Financial Times, gold sales soared 87% as uncertainty kicked in on election day earlier this month. As prospects of a hung Parliament loomed, “panic-stricken” investors converted their sterling into gold.