The value of an ounce of gold fell for the fifth day in a row as world markets geared up for the results of the United Kingdom’s European Union referendum, commonly known as the “Brexit.” Falling gold prices could point to increasing confidence that the U.K. will opt to stay in the E.U., a result that is expected to stabilize markets and shore up the value of the British pound. The contest is by all accounts a close one, however, and should England choose to make a “Brexit,” we could see gold bounce quickly in the opposite direction. Polls in the U.K. have closed and vote counting is now underway.
Gold closed at $1,262.15 an ounce today, according to the London Bullion Market Association. That is $48.60 less than the $1310.75 high mark posted last Thursday. Current evaluations show the commodity down another $2.95 since the close of the London session, putting the value nearer to $1,259.20.
Update #1, 7:55 p.m. ET: Gold has climbed $12.30 in the last two hours following reports of a strong showing by “Leave” voters.
Update #2, 6/24/16: The U.K. has voted to leave the European Union. The resulting market instability has given gold a big boost; it is currently valued at $1,313.85 according to the London Bullion Market Association.