Early this month, gold prices skyrocketed to more than USD $1,350. This increase, which brings the metal’s value to a 28-month high, is fuelled by uncertainty over Brexit.
Gold is seen as a safe haven during times of economic instability, making it a hotspot for investors fearing the impact of Britain’s exit from the European Union.
“The general bullish sentiment for gold coupled with the post-Brexit uncertainty continues to underpin the metal and the complex as a whole,” says Geneva-based MKS Group trader James Gardiner.
At this time last year, gold was trading for around USD $1,100 an ounce. Since the beginning of this year, the precious metal’s price has increased 24 per cent, growing 8 per cent since Great Britain’s June 23 vote to leave the European Union.
At this time, the metal’s value is sitting at approximately USD $1,330.
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