EU Election Results - The Brexit Party dominates
Today is Monday 27th May 2019 and we are commenting on the results of the European Elections which have now been fully announced.
Yesterday we pointed out that we expected Nigel Farage’s Brexit Party to dominate the election gaining some 30 seats and in fact they achieved 29 – when one considers the Party is less than 2 months old, that is some considerable achievement.
That said, UKIP the Party Farage left which previously had 24 seats actually achieved zero – yes zero so its clear that all of its supporters moved on to the Brexit Party and so too have a number of Conservatives and Labour Party members.
Formerly the Conservative Party which is currently the Party of Government in the UK had 19 MEPs now they have just 4. We expected the Conservative number of seats to reduce dramatically but not that dramatically. Labour – the Official opposition have little to be pleased about either. They reduced their number of seats from 20 to 10.
The other major gainers were the Liberal Democrats – a Pro EU Party – which came second with 16 seats up from their previous 1 and the Green Party, another Pro EU Party gaining 7 seats up from 3 previously.
It was clearly an election around Brexit with the Pro Brexit vote essentially all going to the BREXIT Party and the anti-Brexit vote being shared between the Liberal Democrats and the Greens plus a smattering of Scottish and Welsh nationalists.
Today we have seen gold rise some £4 per oz to £1014 and silver is up 6 pence to £11.52 and in US dollar terms gold is up just $1 and silver is up 3 cents but we have to bear in mind that today was a Bank Holiday in the UK and its Memorial Day in the US so we are expecting more significant moves tomorrow or at least a better indication of how the markets are truly assessing this situation.
We just foresee for the time being confusion, mixed messages and a degree of political turmoil. This will have a detrimental effect on sterling and a positive one on gold and silver prices, at least short term whereas ironically, we believe that in the US the opposite will happen, the dollar will strengthen, and precious metal prices are likely to fall.
We shall of course provide further updates as these matters progress. What are your predictions for the next few months remembering that the UK deadline for a BREXIT has been extended to 31st October of this year?
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