The global price of gold
is again around the same level as a year before, just before a majority of British citizens voted to exit the European Union.
In June 2016, speculation on the Brexit
vote pulled gold
from $1,204 to $1,256 an ounce. When the voting result was out on June 23, the rally continued till $1,366 an oz in July. Now, though, gold
is back to trading around $1,250 an oz.
In India, standard gold
in Mumbai closed at Rs 29,530 per 10g on June 23 last year; now, it is Rs 28,695 per 10g, about 2.8 per cent less.
Ross Strachan, precious metals demand manager at GFMS
Thomson Reuters, said: ""On June 23, when the UK
voted to leave, the pound took a sharp plunge and the price of gold
in sterling terms gained 25 per cent in the fortnight after. But, the impact was shortlived. Thereafter, the vote had no tangible effect. At the higher gold
price, scrap inflow increased to multi-year highs, while jewellery and investment demand saw a marked drop. Given the political uncertainty since the general election (in the UK), it is currently far from clear how Brexit
will pan out."