Brits Paying Most in Three Years to Buy Gold Before Brexit Voteby and
Sterling price of gold is poised for highest close since 2013
Silver holdings are close to record after climbing for 11 days
Brits who want their wealth in a haven like gold ahead of the Brexit vote will find themselves paying the most in almost three years.
With the U.K. approaching a referendum on whether it will exit the European Union, gold priced in sterling has soared 8.5 percent this month and touched as high as 912.99 pounds ($1,288.78) Tuesday. That’s the highest since August 2013. The metal is becoming more expensive as the pound fell to a two-month low. Five polls put the ‘Leave’ campaign ahead, and the Sun, Britain’s best-selling newspaper, backed a Brexit on its front page.
“There’s a lot of concern here about the Brexit,” Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. “The pound is going to be one of the riskiest trades to make.”
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Gold futures for August delivery, priced in dollars, increased 0.1 percent to settle at $1,288.10 an ounce on the Comex in New York at 1:41 p.m., capping a fifth straight gain.
Holdings in exchange-traded funds backed by gold rose by 2.85 metric tons to 1,876.7 tons as of Monday, the highest level since October 2013, data compiled by Bloomberg show. Assets have risen for 10 straight days.
Holdings in silver ETFs have increased for 11 days and are just short of a record high, which was 20,182 tons set in October 2014.
In other metal news:
- Silver futures for July delivery slid 0.1 percent to $17.424 an ounce on the Comex.
- On the New York Mercantile Exchange, platinum and palladium each dropped more than 1.8 percent.