Britons’ Historic Poll to Leave EU Affects Gold Market

The result for British voters elected to leave the European Union(EU) has been announced today, which will have far-reaching repercussions both domestically and internationally, and immediately plunged the 28-member political and economic union into its worst crisis since it was founded.

The vote result was at times bitter and acrimonious. The Leave campaign, headed by former London Mayor Boris Johnson, took 51.9% of the vote to the 48.1% that the Remain campaign, headed by Prime Minister David Cameron. According to British Broadcasting Corporation, 72% of the electorate voted.

The result had an immediate effect on the financial markets, with the pound plunging to a 30-year low against the US dollar and the Euro, Europe’s single currency, slid 3% against the US currency. The US has for years had British membership of the EU a core part of its European policy, while the UK and China are experiencing what Cameron and President Xi labeled “a golden era” after the Britain last Oct., when deals worth 40 billion sterling were announced. Now the referendum result to leave the EU is affecting the gold market greatly, which will lead the gold price to a increasing tendency apparently. It is said that gold, as a favorable hedge investment, will be more and more popular by the investors, which will push the gold price moving up.

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