news.goldseek.com / By: Chintan Karnani, Insignia Consultants / 3 October 2016
The UK has said that it will complete the formalities to exit from the European Union by the end of March 2017. The UK economy is growing despite the EU exit fears. The UK will benefit much more after the EU exit as it can follow independent trade policies. The Cable has been knocked down against the major currencies. I believe that the cable will be the star performer this quarter and next year. Buying far dated call options seems more or less risk free. However in the short term cable (against the US dollar) can fall to 1.2500 and below if it trades below 1.2850 next week. We just might see a direct correlation between the cable and gold till next year.
This is a big week for gold and silver. US employment numbers will tell us whether chances of an US interest rate hike beyond December are there or not. Indian demand and Chinese demand trends will also affect bullion. Hindus have an auspicious week. Chinese have a state holiday this week.