By Boris Dzhingarov
A referendum in Italy this coming weekend could give a ‘Brexit’ style boost to international gold prices which have been battered since the election of Donald Trump on November 8th. While U.S stock markets have rallied since Trump’s upset victory over Democratic Party nominee Hillary Clinton, gold has dipped to below $1,200.00 U.S an ounce.
The drop in gold prices since the Trump victory has corresponded with the dramatic rise in the strength of the U.S dollar, but some believe that trend has already begun reversing itself and may escalate after Sunday’s referendum. European markets have been jittery on fears Italians will reject proposed constitutional-reforms favoured by Prime Minister Matteo Renzi on Dec. 4th.