What Does Brexit Mean for Gold?
Analysts interviewed by Kitco News say to watch the British pound for signs on how it will impact the yellow metal. Frank Holmes reminds investors to also keep track of the U.K.'s 10-year government bond yield and real interest rates.
The deadline for Britain’s withdrawal from the European Union is fast approaching and there is still no agreed upon deal in place. This has investors worrying about what a hard Brexit means for the markets and for the price of gold. Analysts interviewed by Kitco News say to watch the British pound for signs on how it will impact the yellow metal. Frank Holmes reminds investors to also keep track of the U.K.’s 10-year government bond yield and real interest rates. In the article Frank says, “U.K. inflation rose 1.9 percent annually in February, meaning the 10-year yield is really in negative territory. Historically, negative rates have been very constructive for gold prices.”
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