“Brexit” risks coming into focus

Commodity prices have generally risen in the past week, helped by further dollar weakness. However, sentiment already appears to be turning more cautious on renewed concerns over the health of the global economy and worries about Brexit. A UK vote to leave the EU in the referendum on 23^rd June would presumably have a negative impact on global business and investor confidence and hence undermine the prices of industrial commodities. On the other hand, it should boost demand for safe havens, including gold whose price could easily jump to $1,400 per ounce in the event of a Brexit vote.