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Gold eases lower as Brexit concerns ease

Published: 16:16 11 Jul 2016 BST

Picture of gold bars

Gold eased lower as stock markets rallied as fears over Brexit faded as the conservatives seemed set to elect Theresa May as its new leader and the UK’s new PM.

Brokers have been quick to upgrade forecasts for the current year, due to the impact on the global economy of a UK exit from the European Union.

But after a strong performance from equity markets today, following the strong non-farm payroll number Friday, some of the wind went out gold’s sails.

Gold hit a two year high of  $1,373 last week and is up about 25% this year, but silver has done even better.

Bank of America summed up the bull’s arguments last week when it said: “Many of the underlying issues affecting the global economy are structural, with Brexit merely a symptom of the problems many countries are facing.”

The US bank turned bullish on gold in February and now expects the price it rise to nearly US$1,500 in 2017, while silver may rise as high as US$30.

Today, a couple of hours into US trading, gold was trading US$8 lower at US$1,357.

Silver added a couple of cents to US$20.37 and platinum rose by US$1 to US$1,095.

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