Wyckoff: $1,308 Gold Price Possible Post-FOMC
The gold price today (Friday, June 24) rocketed past the $1,300 mark after the results of the Brexit vote sent global markets into a wild tailspin.
As of 1:35 p.m., gold prices were up 4.6% to $1,321.10. That puts the yellow metal on track for its largest one-day gain since February and its highest close since August 2014.
The results of the UK referendum are now clear Britain has voted to leave the EU. And while the price of gold is benefiting the most from the controversial decision, markets around the world are in turmoil.
European markets all plunged on the news. The UK"s main stock index, the FTSE 100, fell 3.2% on the day, while Germany"s and France"s main indices were down 6.8% and 8%, respectively. Here in the United States, the Dow Jones Industrial Average is down 2.8%.
It"s clear the Brexit will be all everybody talks about in the coming weeks. Today, I"m going to discuss where we can expect gold prices to move in the wake of this massive frenzy.
First, here"s a recap of the gold price"s wild week
Gold Price Today Soars Following Lackluster WeekThe price of gold kicked this past week off with a session of volatility. On Monday, June 20, prices fell 0.1% to close at $1,290.
Gold"s headwinds blew even stronger the following day. The metal immediately dropped by nearly $20 to $1,271 when markets opened. Gold prices eventually closed at $1,268 and logged a loss of 1.7%.
Wednesday was more of the same, though less dramatic. Gold traded flat throughout the day and closed just 0.2% lower at $1,266.
For comparison, here"s how the U.S. Dollar Index (DXY) has been trading this week
Notice how both the price of gold and the U.S. dollar declined on Wednesday. Remember, this kind of short-term behavior where both move in tandem is not typical.
This pointed toward an easing of fear regarding the likeliness of the Brexit vote producing a win for the "Leave" side.
Yesterday, the polls opened and British citizens voted on whether or not their country would leave the EU. During the day, gold prices trended lower and closed at $1,263.10 for a 0.2% loss. Again, this movement showed how investors were anticipating the country to remain in the bloc.
Then, the UK shocked the world with a Brexit, sending the gold price today to its highest level since 2014.
With today"s rally, investors want to know if gold prices will maintain these gains in the coming months.
Here"s my specific gold price target following the Brexit results
Despite the Rise in the Gold Price Today, This Is Where It"s HeadedJoin the conversation. Click here to jump to comments
About the Author
Peter Krauth is the Resource Specialist for Money Map Press and has contributed some of the most popular and highly regarded investing articles on Money Morning. Peter is headquartered in resource-rich Canada, but he travels around the world to dig up the very best profit opportunity, whether it"s in gold, silver, oil, coal, or even potash.
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Source: http://moneymorning.com/2016/06/24/gold-price-today-surges-to-two-year-high-after-brexit-vote/
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