Ole Hansen, head of commodity strategy at Saxo Bank, shares his thoughts on trading gold in the event that the UK votes on June 23 to leave the European Union.
Hansen believes the risk/reward for trading gold could be towards the upside. He says the referendum could create uncertainty with investors moving away from stocks towards safer assets including gold.
If the UK votes to leave, Hansen says gold may move toward its 2014 highs, just below $1,400.
But if the UK votes to stay, gold could dip to the $1,250 area, says Hansen, who adds that the increasing amount of negative bond yields has driven gold and other safe haven assets higher this year.
Read more about Hansen’s analysis here