EU referendum: HSBC note on Brexit and the price of gold
By GCRU Gold News on Thursday, June 16 2016, 03:59 - Permalink
Gold prices are likely to explode if Britons vote to leave the European Union when they go to the polls next Thursday, gaining as much as 10% in a short space of time.
A vote to leave, could result in as much as a 10% rally in gold prices, to cUSD1,400/oz, we believe. The drive higher may be more pronounced if there were to be broader concerns about the future direction of the EU after the vote. Gold could also benefit from the reluctance of investors to move into the GBP sterling or even the EUR euro.