The price of gold on Wednesday reached peaks last seen more than two years ago as investors fled to the safety of the precious metal after Britain voted to leave the EU.
Gold rose to $1,375.45 per ounce in mid-session trading, its highest level since March 17, 2014.
“Gold is once again to the fore,” said David Govett, Head of Precious Metals at Marex Spectron.
The shock result of the June 23 referendum, followed by political infighting in Britain, has pushed the pound to record lows and depressed stock markets.
“As our glorious leaders (in the UK) continue to muck around and bicker with each other, sterling is sliding ever lower. This is impacting on the euro and various other markets and generally contributing to an atmosphere of worry and uncertainty,” he added.
A breach of the key $1,400 level will become a distinct possibility, Govett said, “if the UK continues to talk itself down and drags others into the quagmire”.
Fresh money flowing into the gold market came mostly from equity markets, which were falling again Wednesday, but also from bond markets, themselves refuge investments, where yields have been testing record lows, Comerzbank analysts noted.
Silver also boasted a two-year high Wednesday, reaching $21.14 per ounce, a level last seen on July 18, 2014.
(AFP)
