Gold back at last year's Brexit level

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."