Pound Drops and Gold Jumps Above £1000 on Hard Brexit Expectations
By Samuel Gee, News Editor
16 Jan 2017
Gold has jumped 1.44% (£+14.10/ oz t) in sterling and 0.43% ($+5.10) in dollars this morning, marking the beginning of what is likely to be an interesting week for financial markets.
Gold priced in sterling jumped above £1000/ oz t, hitting its highest price since November after the pound fell 1.6% to below $1.20, the lowest since October’s ‘flash crash’. Reports that PM Teresa May is likely to announce a hard Brexit on Tuesday knocked the pound with investors showing little optimism for the post-Brexit British economy.
Regardless of the potential long-term success of prospective commercial deals with non-EU countries, a hard Brexit is widely expected to bring more turmoil and volatility to the pound in the short-term.