By Adrian Ash
GOLD PRICES pushed up but held below Friday's Brexit jump to new multi-year highs in London trade Monday, as Western stock markets sank once again following the UK referendum's decision to quit the European Union.
Gold on Friday made its highest weekly close in London's wholesale trade since July 2014 against the Dollar, and rose again today despite strong selling pressure at the benchmark LBMA Gold Price auctions.
Prices in Sterling meantime saw a rise back above £1000 per ounce of gold in wholesale trade – a level last seen in spring 2013 – as UK prime minister David Cameron said there will not be a second referendum despite 3.7 million people signing an online petition at Parliament's official website.
Gold priced in Euros touched €1200, a level first seen amid the crisis of summer 2011.
"With strong uncertainty around the stability of Europe, and the the Fed unlikely to raise rates before December, we have revised upwards our forecasts," says Bernard Dahdah at French investment and bullion bank Natixis.
The best forecaster in 2015's professional LBMA competition – picking the annual average gold price down to the dollar at $1160 – Dahdah saw his 2016 highest-price forecast of $1300 per ounce beaten on Friday.
"We now see gold averaging $1275 this year," says Dahdah – some 31% above his previous forecast of $970 – with a "messy divorce between the UK and Europe" perhaps helping the annual average to reach $1400.