As long as we continue to see the tailwind from falling bond
yields, from Brexit worries and from a dollar which has been under a bit of
pressure again, gold and silver will continue to perform,”
said Ole Hansen, head of commodity strategy at Saxo bank.
Hansen added that he thought it was possible for gold to break the $1,300 mark,
while silver could also jump over to more than $18. Commerzbank also
rode the gold train this week, claiming higher
risk aversion was driving the gold price.
“Weak stock
markets and further falling bond yields presumably helped drive the gold price
up,” the bank said in a note on Friday.
Julian Jessop from Capital Economics said that although gold was likely to benefit from
the uncertainty around Brexit in the short-term, the effect would not be
as long-lasting, or as great, as some believe.
Prices are likely to be
bolstered in the next two weeks by nervousness over Britain's June 23
referendum on its EU membership, analysts said.
The market is no longer worried that the Fed will raise rates next
week and investors are
more concerned about the UK referendum, which is likely to help increase demand
for gold.
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