Boris Johnson Becomes The Next Prime Minister
Tuesday morning brought to a conclusion the Conservative Leadership race, with Boris Johnson comfortably defeating Jeremy Hunt by 92,153 votes to the foreign secretary's 46,656 in the ballot of Tory party members. He wasted little time in promising he would “deliver Brexit, unite the country, and defeat Jeremy Corbyn”
He has previously stated that the UK will leave the EU on 31st October, “do or die,” accepting that a no-deal Brexit will happen should an agreement not be reached by Halloween.
With a number of high profile MP’s vowing to quit over Johnson becoming leader, his appointment has done little to bring calm to what is surely the most turbulent political period in peacetime history this country has ever encountered. Talk of a general election has quickly surfaced, with the governments slim majority already looking fragile. The upcoming by-election in the Welsh constituency of Brecon & Radnorshire could further reduce the majority should the Tories lose.
With the International Monetary Fund recently stating that Brexit ranks alongside current US trade policy as the biggest threats to the world economy, there is widespread belief that the price of gold may be boosted, such is the uncertainty surrounding every facet of the global market. Boris Johnson’s appointment will not quash any doubts over this uncertainty, if anything, it has heightened it!
We will add updates to both the effects on sterling and the response from gold in the coming days and weeks.