Gold has been soaring after the surprising vote for Britain to leave the European Union. The shocking news has had investors diving for protection in bullion and other assets that are looked at with less risk.
Gold is a safe haven in times of crisis and Britain’s departure from the EU is nothing short of that.
Gold delivered double-digit percentage gains to top 1,000 pounds an ounce for the first time in more than three years. It also soared as much as 21% in early trading.
Spot gold hit as high as $1,358.20 per ounce, levels not seen in more than two years.
Shares of gold mining companies also moved north including Barrick Gold (ABX) which saw a 10% gain in pre marketing trading. Rangold Resources (GOLD) soared as much as 12%.
Marie Owens Thomsen, chief economist at Indosuez Wealth Management commented, “(Brexit) benefits gold because in a general risk-off mode, it’s a natural safe haven for everybody.”
“Now that the UK has voted to leave, we think there’s a higher probability that the $1,350-1,360 per ounce level can be breached, and we’re therefore looking for an extended target in the $1,400s.”
Disclaimer: We have no position in Barrick Gold (ABX) or Rangold Resources (GOLD) and have not been compensated for this article.