Gold surges following Brexit

DAILY SABAH
ISTANBUL
Published 25.06.2016 00:56

Gold's gram price reached as high as TL 130 ($44.50) as the world coped with the Brexit shock in markets. A quarter gold coin in the Grand Bazaar sold for TL 205, while a Cumhuriyet gold coin sold for TL 807.

Gold surged to $1.358 per ounce. The price hit its highest level, TL 130.40, after Britain voted to leave the European Union. Polls published regarding the EU referendum up until the night before Brexit indicated Remain voters were leading the race, a fact which caused people to maintain their optimism until the last minute. Maintaining a downward trend since the beginning of the week based on this optimism, gold closed the day at $1.256 an ounce.

By jumping as high as possible after investors rushed to acquire safe-haven assets following the Brexit outcome, gold surged to $1.358 an ounce. Later it gave some of its earnings back as of 9:20 a.m. on Friday, and it balanced at $1.318 an ounce with a 4.9 percent increase compared to the closure the previous day.

Gold's current gram price, on the other hand, is TL 125 after hitting its highest level ever, along with the increase in the dollar's value. According to analysts, the Brexit decision has caused panic in investors, who had positioned themselves to expect a Remain victory, and price movements are going to be rocky, along with the activation of stop-loss orders.

Share on Facebook Share on Twitter