Watch For Gold to Move Lower Post-Brexit

KITCO NEWS - Gold (GLD) - Get Report ended Wednesday slightly weaker, falling to a two-week low. With Thursday's Brexit vote looming, sellers in the gold market seemed scarce. 'It is expected that if the UK votes to remain within the EU, capital will re-deploy into risk assets, especially in the continent. The perception is that a vote to remain will stabilize the investment prospects and allow for the ECB's monetary policy to take hold and create growth, ' said Peter Hug, global trading director for Kitco Metals. He explained that a vote to leave would not have direct immediate economic impact but the uncertainty of the 'new' arrangement will curtail capital investment. 'Gold should remain in the $1,265 - $1,278 range until the vote,' he said, adding that if the British public decides to leave, the metal should bounce to $1,300 quickly. Hug also had frank words for Federal Reserve chair Janet Yellen, calling the central bank 'an embarrassment.'  August gold futures settled Wednesday at $1,270 an ounce, down $2.50 for the day.

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