Gold Strikes Two-Year High on Brexit Vote
Gold prices surged Friday to the highest level in more than two years following Britain's shock decision to leave the European Union.
The precious metal spiked as high as $1,359.08 per ounce -- the highest level since March 19, 2014 -- before settling at $1,318.80 around 0650 GMT.
Investors flocked to the traditional haven investment on fears over the global fallout from Britain's decision to withdraw from the 28-nation EU bloc, after a bitterly-fought referendum campaign.
"Gold is soaring as investors flock to relative safety," said Joe Rundle, head of trading at ETX Capital in London.
Investors had been wrong-footed by the vote outcome after opinion polls and bookmakers had pointed Thursday to a victory for "Remain" campaigners.
"Leave's victory has delivered one of the biggest market shocks of all time," added Rundle.
"The reverberations of the vote will be felt around the world. The extent of the damage on asset prices is hard to gauge but it's likely to be bigger than anything since Lehmans at the very least," he added, in reference to the U.S. investment bank which collapsed during the 2008 global financial crisis.
"It's fair to say we've never seen anything like it and the chances are markets will remain highly volatile over the coming hours and days," said Rundle.
Source: Agence France Presse
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