Gold Rises Most Since 2008 Crisis as Investors Seek Brexit Haven
Bloomberg - Jun 23, 2016
Gold surged the most since the height of the 2008 global financial crisis after the U.K. voted to exit the European Union, causing turmoil across markets and boosting haven demand.
Bullion jumped as much as 8.1 percent and futures trading volume was double the average for this time of day. As the pound tumbled against the dollar, gold priced in sterling rose 14 percent after rallying as much as 19 percent. Mining companies such as Barrick Gold Corp. and Newmont Mining Corp. advanced.
“We’re still seeing strong volumes across the precious metals space, which should be expected based on risk-off positioning†by investors, Maxwell Gold, a director of investment strategy at ETF Securities, which sells exchange traded funds backed by gold and other precious metals. “Global focus should reshift back more towards the longer-term impact from the Brexit and how this might potentially delay the Fed†from raising interest rates, he said.
