Brexit Drives Fear Trade in Gold and Silver Markets

5:42 AM

June 30, 2016 --Gold prices rose on Wednesday as continued concerns over Britain leaving the European Union sent investors into the safe-haven metal.

While gold did well, silver and mining stocks were the best performers yesterday, with silver blowing through $18 and rising to levels not seen in nearly two years.

Although conventional stock markets had a good day, there is still a strong "fear trade" in place that's affecting gold and the currency markets. There are too many lingering questions about the impact of Brexit that won't be answered for a long time.

However, it's widely thought that a Brexit will indeed cause some real economic fallout -- including and most immediately some major problems developing right now at large banks, especially in Europe. This unfolding situation may be the final straw which ensures the Federal Reserve will NOT raise interest rates this year -- and it's yet another factor that seems to be providing support for gold prices.

Live prices at show gold currently trading at $1,319.80 per ounce on the global market, and silver is coming in at $18.44.

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