Apparently rumours in the U.S of the possible postponement of next week’s UK Brexit referendum following the shooting and tragic death of much liked Labour Member of the UK Parliament, Jo Cox have been largely responsible for the big drop in the gold price back to the $1,280s from its short-lived $1,316 peak. Writing from the U.K we see this as highly unlikely, tragic as the shooting was. There had not been a breath in the U.K media of such an occurrence nor hax there been any call for a postponement by politicians,but the speculation on this has now begun to emerge. However were a postponement to happen it would likely be seen as a dirty trick by the pro-Remain U.K. establishment to try and rescue what could seem to be a losing situation and make Brexiteers all the more likely to come out and vote to exit the EU.
If it turns out that the shooting was referendum-related – then it could help swing votes against the Brexit option out of sympathy for the murdered MP who held strong Remain views.
The postponement rumour appears to have come about because, as a mark of respect, referendum campaigning was suspended for two days in an all-party agreement. We expect the pro- and anti-EU campaigns to continue at an even greater pace tomorrow (Friday). We shall see.
What the big fall in the gold price on the postponement rumour does suggest though is that if, in the event, the Remain camp wins the day the gold price could see a similar drop from wherever it has reached immediately prior. If the Brexit option come about then the opposite could happen with gold soaring