Gold Prices Are Set to Fall, Then Rise After the U.K. Referendum, No Matter What the Result

Gold prices are likely to decline this summer then recover to $1,300 an ounce by year-end, no matter the outcome of the U.K. referendum on Thursday.

Author:: Daniela Cambone
Publish date:: Jun 22, 2016 4:32 PM EDT

Kitco News -- Gold (GLD) - Get Report prices are likely to decline this summer then recover to $1,300 an ounce or more by year-end, no matter the outcome of the U.K. referendum on Thursday, says Jeffrey Christian, managing partner of commodities research firm, CPM Group. Christian is also not ruling out a retracement to the $1,180 an ounce level. Gold prices ended the U.S. day session slightly lower Wednesday and notched a two-week low overnight. Uncertainty surrounding Thursday's referendum was benefiting the price of gold, the metal posted gains over the last three weeks in a row and settled at a nearly 17-month high on June 16. But gold futures fell this week after fears of a U.K exit receded. August Comex gold was last down $1.60 an ounce at $1,270.90.

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.