Investing.com – Gold prices surged in European trade on Wednesday, climbing to the highest level since March 2014 as uncertainty surrounding global growth in wake of Britain’s vote to exit the EU sent investors flooding into safe haven assets.
Gold for August delivery on the Comex division of the New York Mercantile Exchange rose by more than 1% to hit an intraday peak of $1,373.70 a troy ounce, a level not seen in more than two years. It last stood at $1,369.05 by 06:50GMT, or 2:50AM ET, up $10.35, or 0.76%.
A day earlier, gold jumped $19.70, or 1.47%, as investors scurried into safe-haven plays amid heightened fears of the broader impact of Britain’s vote last month to exit the European Union.
Three U.K. commercial property funds worth about 10 billion pounds suspended trading on Tuesday in the face of a rush of redemptions from investors fearing a slump in British property values.
Concerns that financial and political instability in Italy could lead to even more chaos in Europe spooked investors further.
Gold has been well-supported in recent weeks amid fading expectations of a Federal Reserve rate hike in the next couple of months and as expectations mounted that central banks around the world will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
The yellow metal rose almost 9% in June, its biggest monthly increase since February. Prices are up nearly 27% so far this year, completing one of its strongest first halves on record.
Also on the Comex, silver futures for September delivery jumped 44.1 cents, or 2.22%, to trade at $20.34 a troy ounce. On Monday, prices spiked to $21.09, the most since July 2014.