May 29, 2022 6:58 AM

Precious metals climb as Brexit continues to shake up the market

Investors turn to precious metals for stability as Brexit negotiations still shake up the market. Gold rose 0.87 percent while silver climbed 0.49 percent.

/ Published 4 years ago

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Gold and silver ascend as more investors consider them as a safety refuge due to the volatility of several markets brought by Brexit, according to Investing News.

Gold was up by 0.87 percent and trading at $1,223.50 per ounce, while silver climbs 0.49 percent priced at $14.34 per ounce.

According to ANZ analyst Daniel Hynes, “The issues around Brexit have invigorated a little bit of safe-haven buying in the market. The focus of the market has turned slightly to geopolitical issues at the moment.”

Brexit issues

About seven key ministers resigned after the U.K. Prime Minister Theresa May released a draft of her Brexit plan. Several letters urging her to resign have also been sent to Graham Brady, the chairman of 1922 Committee.

Some investors think that this indecisiveness on Brexit could lead to the market crash of the U.K. from the EU, which is why most investors rely on precious metals for stability.

According to The Guardian, the leaders of the EU have launched a “take it or leave it” campaign to the U.K. The members of the EU ruled out the redrafting of the deal from either side.

According to the Austrian Chancellor Sebastian Kurz, “I very much hope that there will be the necessary agreement in the British parliament for this deal. And this would then provide the basis on which an orderly exit of Great Britain can happen and that at the same time a good relationship in the future will be possible … Of course, we support the deal made here 100%.”

Though the members made such campaign, they are still willing to help and assist the prime minister.

However, the French finance minister Bruno Le Maire left some harsh words towards the U.K. saying, “The choice now faced by British political leaders who have advocated Brexit is to renounce their absurd political promise or face economic disaster, with the British people the main victims.”

He also added that some British politicians have promised their citizens that Brexit offers the promise of tomorrow, but it could actually end tragically.

About seven key ministers resigned after the U.K. Prime Minister Theresa May released a draft of her Brexit plan. (Source)

One issue that is also being debated is the call to toughen the demands access to British waters by other EU fishing fleets and the U.K. companies’ ability to sell fish to the European market.

According to APAC trading head Stephen Innes, “Gold should continue to find demand on dips, provided the U.S. dollar remains in check,” per Reuters.

Meanwhile, platinum and palladium also climbed this week. Palladium is priced at $1,167 per ounce, while platinum is at $845 per ounce.

In other news, one of the largest silver producers, Wheaton Precious Metals, has been experiencing a drop in shares after the company released its third quarter financial results, per Meanwhile, Canadian government just recently granted Goldcorp CA$5 million for new all-electric Borden project, per Investing News.

(Featured image by Money Metals via Flickr. CC BY 2.0)

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