Fears surrounding Brexit saw gold rally to the recent highs of $1,375. However, as the uncertainty created in the wake of the "Leave" vote wanes, global equity markets have rallied, helped in no small part by surprisingly strong employment numbers from the U.S.
Not everybody is believing the positive spin being put on recent financial market data. In fact some would go as far as to say that it is "propaganda" being spread in the mainstream media in an election year for the US. At least that is what John Embry concluded in a recent interview.
Equity markets globally have rebounded to their pre-Brexit levels and volatility in financial markets is the lowest that it has been for a month. Even the precious metals rally has taken a breather.
Theresa May is set to become the Prime Minister of Great Britain in the next few days. Will the new PM bring a degree of stability back to turbulent markets in a post-Brexit Britain or what does the future hold under a new Conservative leadership.
Against the backdrop of ongoing geopolitical and financial market uncertainty the Chinese central bank has continued to add to their gold holdings in an effort diversify the reserves further.
With gold prices having risen by 24% in dollar terms already this year, UBS analyst Joni Teves declared in a note to clients yesterday that; “gold has entered a new phase”.
The "In Gold We Trust" Annual Report by fund managers, Ronald-Peter Stöferle and Mark Valek has just been published and is as ever essential reading for all seeking to better understand the gold market.
