Gold rose to its highest level in two years on Friday morning as it became clear that the UK had voted to leave the EU.
The price of gold jumped as much as 8.1 per cent to $1.358.54 an ounce, its highest since March 2014, as investors sought to put their money in so-called safe have asset.
The surging gold price clearly shows the panic sweeping financial markets, according to Adrian Ash, head of Research at BullionVault.comGoogle reported that the number of online searches for the words “buy gold” climbed by 500 per cent in the past four hours as the results pointed to a victory for the Leave campaign.
“This is just the kind of crisis which gold helps savers and investors insure against. Gold offers certainty and security as stock markets and currencies sink, just as it did during the 2008 meltdown,” Ash said,
The difference is that this shock was clearly signposted, and many private investors didn't wait for today's result to get prepared,” he added.
Transactions have jumped by 32 per cent since the start of June on the Royal Mint’s online trading platform, compared to last month. Revenues have increased nearly 150 per cent in the same period.
In a closely fought campaign, the UK has voted to leave the European Union after 43 years, plunging the country into uncharted political and economic territory.Speaking prior to the EU referendum, Chris Howard, director of the bullion at Royal Mint, said: “Whilst we are uncertain at this stage on what the impact the results of both the European Referendum vote and the US elections will have on the gold market, we have ensured that with the Royal Mint’s trading platform and our significant gold holding, we are prepared for possible market turbulence.”
Leave won by 52 per cent to 48 per cent in results announced early on Friday morning.
Demand for gold has spiked by a 21 per cent from January to March this year, the equivalent of 1,290 tonnes, its fastest pace ever in 2016 according to the World Gold Council (WGC).
Concerns about the shifting global economic and uncertain financial landscape have created a positive environment as gold became a “safe haven” for investors, the WCG said.