Spot gold prices climbed more than 1 per cent on Monday as aftershocks from Britain’s vote to leave the European Union pushed investors towards the safe-haven asset.
Britain plunged deeper into political crisis on Sunday after its vote last Thursday, leaving EU and world officials confused about what to do next.
British Finance Minister George Osborne, who had warned during the campaign that a “Brexit” would cause financial market volatility, scheduled a statement for 7 a.m. (0600 GMT) on Monday to provide reassurance about “financial and economic stability”. Spot gold had risen 1.35 per cent to $1,332.8 an ounce by 2306 GMT, after prices in the previous session surged by 4.8 per cent to top out at $1,358.20 – the highest since March 2014.
US gold rose 1 per cent to $1,336 an ounce.
In wider markets, US stock futures dipped and the British pound fell more than 1 per cent in early Asian trade on Monday, as markets struggled to shake off a swathe of uncertainty sparked by Britain’s decision on the EU.
Source: Reuters