As soon as the news of Britain's withdrawal from the EU comes out, the financial market will definitely fall into a temporary violent shock, and the stock market, futures market and gold are all following the market. It is predicted that the result of the British referendum is to stay in the EU, but an accident happened, called the Black Swan incident. The result of the British referendum is actually predictable, but people are not prepared. The surprise of Britain's exit from the EU made people instinctively flock to gold and dollars.
Gold is not paper money based on national credit, but has the dual attributes of commodity and currency. Britain has a great influence on the European Union, and the result of the British referendum is unexpected. In fact, people are irrational. People subconsciously snapped up gold, which led to a sharp rise of 8%. But it won't last long. After all, the markets of dollar and gold are opposite.
Although the Federal Reserve strongly suppressed gold and raised the dollar, it could not change the fact that the dollar was useless. Since the dollar has been rising, after a short-term shock, gold will definitely fall again under the pressure of the United States and the guidance of the market. Moreover, it is generally believed that after Brexit, the EU economy will be even worse, which may lead to the depreciation of the euro.
Only in the extreme case of Britain's withdrawal from the EU will the price of gold fluctuate greatly. In fact, these situations have actually been taken into account by the market. After all, Britain is only a small market compared with other important countries or the United States. Moreover, there will still be too many unpredictable factors for Britain to leave the EU, which may not happen. Therefore, apart from the extreme foreign exchange reaction, Britain's withdrawal from the EU is unlikely to have a significant impact on the price of gold and the euro.