Brexit Uncertainty Underpins COMEX Gold

(November 16, 2018 - ScrapRegister)

COMEX gold is catching a bid from turmoil surrounding a reported Brexit deal, said George Gero, managing director with RBC Wealth Management.

Two of U.K. Prime Minister Theresa May’s cabinet members resigned over a controversial Brexit plan, and the British pound fell sharply on the news. There are news reports suggesting May could even face a no-confidence vote.

Gold prices ended higher on Thursday, shaking off pressure from a stronger dollar to hold on to a week-to-date gain as U.S. and European equities declined.

Gero added that the short side of the market, or bearish positions, has become “a very crowded trade.” This, he said, means a “rally looks to be in place.” These traders must buy to offset, or exist, their short positions.