viewCapital Economics

BREXIT could destabilise the global economy – boosting gold, says Capital Economics

Simona Gambarini, commodities analyst at Capital Economics, says that uncertainty over a potential BREXIT has been the reason the gold price has risen “quite sharply” over the last few weeks.

Gold is traditionally seen as a haven in times of uncertainty, and has climbed around US$70 (5.9%) in the last three weeks to US$1,274.

Gambarini says if the UK leaves the EU, it would have a “quite an impact on the global economy”, adding that it could “trigger a round of different countries setting up referendums to also decide on leaving the European Union”.

This has also been highlighted by Federal Reserve, which said it would slow the pace it will increase interest rates.

She says “BREXIT has been highlighted by the Fed as a key risk to their monetary forecast and it could potentially destabilise the [global] economy and therefore the Fed might decide to keep rates on hold”.

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events


The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Capital Economics named herein, including the promotion by the Company of Capital Economics in any Content on the Site, the Company receives...


Capital Economics’ Jessop on goldilocks ‘not too high, not too low’ oil price

Julian Jessop, Chief Global Economist from Capital Economics says the recent uptick in the price of oil could be beneficial for energy industry players. The ideal scenario he says would be if prices settle between US$45 to US$60 in the next few years which is “high enough to ease some of the...

on 05/27/2016

2 min read