Gold Prices Down

Global financial markets were affected by the BOE’s statement yesterday. And a vote in favor of leaving the European Union in the U.K.'s referendum on membership next week could adversely affect the markets globally, the Bank of England said on Thursday.

The Pound declined to its lowest level in two months and traded at $1.40, after Labour Lawmaker Jo Cox was shot.

After she had just finished a public meeting with constituents, lawmaker Jo Cox a 41-year-old was shot and stabbed in Birstall, near Leeds in northern England. 

Euro pared its losses against USD and traded above $1.12. The single currency is awaiting the speech of ECB President Mario Draghi and could be settled at $1.12 by the end of the day.

The trend remained consistent with employment growth, despite the number of Americans filing new applications for jobless benefits rose last week.

Initial claims for unemployment benefits increased 13k to a seasonally adjusted 277k in the week ending June 11, the Labor Department said Thursday.

Yesterday, gold traded below $1,280 after reaching $1,315. The precious metal failed to settle above the psychological barrier of $1,300. A vote to stay in the EU could drive gold prices to decline further.

On Thursday, Asian stocks declined and Japanese yen jumped after BOJ refrained from adding more stimulus and the Fed Reserve lowered its growth forecast for the U.S. economy.

Dollar fell sharply to 104 levels vs. JPY and could decline further to 101 or 103 levels. The Japanese yen is awaiting the EU referendum and could rise due to an intervention from BOJ.

Oil prices fell sharply as investors assessed global economic uncertainty. WTI traded below $46 and the resistance levels of $45 could support the oil to re-settle or rise slightly by the end of the day.