By Naeem Aslam Chief Market Analyst ThinkForex
The precious metal has very much priced in the decision that the Remain group will win in this referendum outcome where the public is making a decision not only for themselves but for the generations to come. The decision made by the British Public will have some serious consequences no matter which way they vote. The only difference is that it is widely believed that the public is going to make more wiser choice and hence we are not seeing any bullish bets coming for gold.
Update: UK leaves the EU – it is official – expect more crashes
If you look at the volatility for gold, it has also eased off and confirming that traders are no longer interested in buying any hedge. Although, it does sound insane because we really do not know the exact outcome yet and all those odds from bookies could easily lead the market in a trap which could end up very badly.
Even if Brexit does not take place, it does not mean that the game is over for gold, because we still have way too many other volatile events which are going to be not backed by polls such as the weak global economic conditions over in china and the ECB trying its best to bring growth back in the Eurozone.
Moreover, there is also a strong possibility that we have a massive bubble forming in the bond market and surely central banks are not prepared for that as it is them who are inflating this bubble by intervening in the bond market directly.
More:
- EU Referendum Preview: Positioning, Scenarios and Key Results Releases
- Is your broker Brexit ready?
- Brexit or Bremain – all the updates