UK has filed for the divorce from EU and it remains to be seen if the courts (UK parliament) approve it.
But for now shockwaves are being felt across the globe and thus gold is trading higher. Prices hit a high of $1358.41 before trimming gains to trade around $1317 levels.
The Brexit shock could stay for a while and hence prices could remain above $1300/Oz levels. Any worsening of the situation - political turmoil in UK, referendum in other parts of Europe would do well for Gold. Note that such events also take Fed away from the next rate hike.
Consequently, prices could rise to $1376 (point C of the cipher pattern). Note the level is very close to $1280 (38.2% of record high – Dec 2015 low). If prices fail to take out the same and head lower, we could see Cypher Leg D unfold, although as of now a drop to Leg D = 78.6 appears unlikely.
But for now shockwaves are being felt across the globe and thus gold is trading higher. Prices hit a high of $1358.41 before trimming gains to trade around $1317 levels.
The Brexit shock could stay for a while and hence prices could remain above $1300/Oz levels. Any worsening of the situation - political turmoil in UK, referendum in other parts of Europe would do well for Gold. Note that such events also take Fed away from the next rate hike.
Consequently, prices could rise to $1376 (point C of the cipher pattern). Note the level is very close to $1280 (38.2% of record high – Dec 2015 low). If prices fail to take out the same and head lower, we could see Cypher Leg D unfold, although as of now a drop to Leg D = 78.6 appears unlikely.
