What A Brexit Deal Means For The Prices Of Gold Around The World

The world is still at a crossroads as to whether Britain is going to leave the European Union or will drop the move and decide to remain.

Brexit has been what one Moses Masika Wetangula described as “messy, noisy and with casualties” and gold is the constant casualty as the debate rages on.

On Tuesday, the prices of gold tumbled to an all-time law as reports emerged that the United Kingdom (UK) and the European Union (EU) were closing in on the Brexit deal.

The debate around Brexit has been a key determining factor in the fluctuations of gold prices around the globe. In recent months, as the debate raged on, there was a surge in demand as the rich ran to store their wealth in gold for fear of an economic recession.

Officials from both Britan and the EU are meeting today (Thursday 17th, 2019) and tomorrow (Friday 18th, 2019) at a break-or-make summit that will emerge with what many are waiting for; whether Britain is leaving the EU or staying.

Investors around the globe want the UK to remain within the EU saying the decision “would remove the worst-case scenario for the global economy.” If the UK will opt to leave, however, it is bound to lose as the world is likely to isolate them with companies planning to leave.

The tension between the United States of America and China has also been another key factor that has been dictating the prices of gold but things are cooling down after President Donald Trump announced: “phase one” of a US-China trade deal.

If the United States and China will reach a deal to settle their differences, the price of gold will suddenly go down than it is at the moment. With the tension, the rich in both the US and China have been flooding the African market to purchase gold to shield themselves in case the global economy tumbled as a result.

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