GOLD RUSH: Gold prices SOAR ahead of May's Brexit speech as markets set for usual panic

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The expensive metal is now sitting at $1,212, as prices continue to creep up from $1,165 at the start of the year.

Experts remarked prices could rise towards $1,250 as Theresa May outlines drawings to leave the European Union (EU) in a speech today.

Gold is considered a safe-deposit home for money by investors, and prices typically rise during times of volatility and uncertainty – values reached record highs of $1,900 during the fiscal crisis.

Current price rises come amid high turbulence in currency buys, sparked by emerging details of Brexit.

The Prime Minister is expected to clinch Britain will leave the single market in a ‘clean’ exit from the EU.

The scuttlebutt has this week pushed the pound down to its lowest level against the dollar since the ‘blaze crash’ in October. 

Naeem Aslam, chief market analyst at Contrive Markets, said: “The volatility in the currency market has skyrocketed once again mainly for Sterling where one-month volatility is touching a level which we arrange not seen since the Bank of England cut the interest rate to save the UK curtness.

“The precious metal is clearly is the beneficiary of this risk off appetite and merchandisers are building their hedge.

“There is simply too much fear in the shop and investors are uncertain about Theresa May’s ability to deliver an outcome which can prevent the job market.”

“The odds are that she is going to divide the country more in her struggle to unite the country- her stance of hard Brexit will please Brexiteers and consternation Remainers.

“This may help the gold price further and we could see the metal heave towards 1250 mark.”

 

Gold prices reached highs of $1,372 in August termination year after the Bank of England cut interest rates in reaction to the Brexit ticket.

And values could continue to rise this week ahead of Donald Trump’s inauguration on Friday.

Mr Aslam spoke: “We have US inauguration ceremony and hopes are that Donald Trump disposition be able to satisfy the bulls that his fiscal spending and tax reform scenarios will soon become a reality.

“The expectations are so high that we believe there are greater chances that traders may feel that they did not get what they compact for.

“Under such a scenario, we could see the gold continue its rally.”

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