"Nasdaq Stock Market" : Why Brexit Makes Gold A Buy

Given the lack of choices, therefore, it looks likely that traders will turn to gold in its traditional role as a store of value and an inflation hedge. There is, however, one market that could benefit as negotiations get underway and that is gold. There are a couple of reasons that that outcome looks likely, but they are more to do with the unattractive nature of the alternatives than any particular attraction of gold per se. In fact the chart above would suggest that that process has begun already, as gold has risen as the dollar has retraced since December. Gold is technically a commodity, but unlike most commodities it has very little practical use.


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Gold price increases as Brexit is due to be triggered on Wednesday


Gold price increases as Brexit is due to be triggered on Wednesday
US gold futures slipped 0.3% to $1,252. London — Gold edged higher on Wednesday as uncertainty about Brexit talks, French elections and US President Donald Trump's economic policies boosted safe-haven buying, offsetting a firmer dollar. A strong greenback makes dollar-denominated gold more expensive for holders of other currencies, potentially decreasing demand. Spot gold was up 0.1% at $1,252.35 per ounce at 11.22am GMT. "The general picture is still positive with dips seen as buying opportunities," said Carsten Fritsch, analyst at Commerzbank in Frankfurt.

Gold ticks higher as Brexit triggered


Gold ticks higher as Brexit triggered
"A resurgent US dollar, along with higher US yields and equities has taken the momentum out of the gold rally for now," said Jeffrey Halley, senior market analyst at OANDA. LONDON: Gold edged up on Wednesday, as uncertainty about Brexit talks, French elections, and US President Donald Trump's economic policies boosted safe-haven buying and offset a firmer dollar. Independent technical analyst Cliff Green said the gold price would need to take a breather after failing to break above its 200-day moving average at $1,260. Strength in the US currency makes dollar-denominated gold more expensive for holders of other currencies, potentially decreasing demand. "The general picture is still positive (for gold) with dips seen as buying opportunities," he said.


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