Gold Prices in UK May Remain Under Pressure this Year

Gold prices in UK

The yellow metal may have lost 40% of its strength for the past four years after enjoying a 10-year bull. Last year it had a monster first-half anyone did not expect. But as political risks surfaced, such as the US elections and the June 23 Brexit vote, gold had have a bumpy ride towards the end of 2016.With the controversial Brexit referendum in the frontline of political upheaval, gold prices in UK may remain under pressure this year but this could be its saving grace as investors look for safe-haven assets.

Swarming Stress Affects the Gold Prices

Gold prices in UK have been upbeat in the start of 2017. For the first two weeks, it was in the positive territory for surging more than 10% on dollar’s correction and post-honeymoon stage. The precious metal is one of the safe haven investments where investors turn to in times of political and economic crisis. Currently, gold futures are comfortably sitting near the $1260-level, the highest settlement in four months or since Donald Trump won the elections in US.

But in Great Britain, uncertainties turned out to be a swarming stress as the country faces te ongoing Brexit process, political turmoil in the Eurozone, rising inflation and the resurging dollar, which could be a big threat to the precious metal. Gold normally holds off its value when there is a stronger dollar and higher prices prevailing in the market.

Experts believed that fleeting safe haven demand could be the lesson investors can learn from last year and this patter may be repeated in 2017 as new waves of political shocks may drown the market.

Gold prices in UK may be on a limbo this year but one sure thing is that this precious metal fair relatively well in times of market uncertainty.

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