Phil Flynn, senior market analyst with at Price Futures Group, looks for gold to rise even if the U.K. ends up staying in EU. He sees a potential dip early in the week, followed by a rise heading into the Thursday U.K. referendum, then a limited pullback should Brexit fail.“The long-term technicals look solid,” Flynn said, particularly with gold’s temporary rise back above $1,300 this week. “There are other fundamentals bullish for gold, like low interest rates and general concerns about the global economy.”George Gero, managing director with RBC Wealth Management, looks for higher prices as we “start going back to the basics” once the Brexit vote is out of the way, with the market focusing on factors such as the economy, Federal Reserve and moves in interest rates. Kevin Grady, president of Phoenix Futures and Options LLC, also looks for the metal to rise again, pointing out that exchange-traded-fund holdings are holding up.“I still look at the ETF holdings as the real investment demand in the market,” Grady said. “They have not gone down. We had maybe one small down day (for ETF holdings) in all of May, when gold (futures) lost 100,000 contracts….I think there is a very good chance they (U.K. voters) leave the EU. That would propel gold.”Still, some observers anticipate some kind of pullback. Ralph Preston, principal with Heritage West Financial, suspects that the dollar index will eventually surge up through the 100 level, thereby sending gold lower.
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