Gold Declines After Politician Shooting

While gold has had a wonderful time in the market as of late, yesterday was an incredibly rough day for the commodity, and many believe declines are likely to continue. The declines were the result of a recent shooting in which a U.K. politician was shot and killed. Today, we'll talk about the shooting, why it has anything to do with the price of gold, and what we can expect to see from gold moving forward. So, let's get right to it...

Jo Cox Killed In Shooting

Yesterday, it was announced that a key member of the Parliament in the U.K. was gunned down. Unfortunately, Jo Cox was killed after being shot at least twice. The shooting happened after a meeting the politician had with her constituents. At the moment, U.K. authorities are still looking a motive for the killing as well as the person or persons responsible.

Why This Has Anything To Do With The Price Of Gold

There is a big vote coming down the line soon. In fact, it is scheduled for the 23^rd of this month, when the British people will decide on the Brexit Referendum. However, following the killing of Jo Cox, there are rumors going around that the vote that's expected to be held on the 23^rd of the month will be delayed.

This vote is incredibly important for gold investors, and for good reason. You see, a Brexit is defined as the action of Britain leaving the European Union. If this were to happen, the U.K. would be forced to renegotiate global trade agreements, which would cause delays in trade out of and into the U.K. It would also likely send the economies of both Europe and the U.K. into a tailspin.

This is important for gold, and for a good reason. You see, gold is considered to be a safe-haven investment. This means that when economic conditions, and or market conditions, are doing poorly, we can expect to see gold climb as investors look to the commodity as a way to keep their money safe. Because the overwhelming opinion is that the people of Britain would be voting for a Brexit, we've seen steep gains in the value of the commodity. However, following the murder of a very loved UK politician, the vote may be delayed and the outcome could be different. As a result, we've seen a reversal in the price of gold.

What We Can Expect To See Moving Forward

If you follow my writing here or elsewhere, chances are that you know that I have an incredibly bullish opinion with regard to what we can expect to see from the price of gold moving forward. While the Brexit vote may be delayed, my opinion has not, and likely will not change!

The truth is that everything is lining up perfectly for further gains in the price of gold. As a safe-haven investment, the commodity does best in the market when economic and market conditions are concerning. If we look around the world, a clear picture starts to emerge. Economic conditions in the United States, U.K., Europe, and Asia are declining in a big way. This is lending a hand to safe haven support.

With the Brexit vote looming, even if it is delayed, gold has plenty of support for further upward action. Considering everything I'm seeing in the market, including the strong possibility of a Brexit, I'm expecting to see more gains in the value of the commodity moving forward.

What Do You Think?

Where do you think gold is headed moving forward and why? Let us know your opinion in the comments below!

[Image Courtesy of Wikipedia]