The price of gold is continuing to climb as the world markets react to the shockwaves caused by the UK’s vote to leave the European Union.
The value of the precious metal, which has been rallying for the past six months, has rocketed as investors seek a safe haven for their cash. The gold price stood at £987.57 per troy ounce at 07:45 today (Monday 27), leaping from £836.39 per troy ounce at 23:00 on Thursday before the results of the referendum were announced.
The gold price has jumped as concerns for the economy in the wake of the Brexit vote saw the value of the pound slump to its lowest levels in more than 30 years. The tremors were felt around the world as share prices tumbled as investors sought a safe haven for their cash.
According to Bloomberg, analysts expect the price of gold to climb even higher by the end of the year and reach levels not seen since August 2013.
In a report, Goldman Sachs analysts Max Layton and Jeffrey Currie said: “The ultimate trajectory will depend on the intensity and duration of the uncertainty shock created by the leave outcome and any potential revisions to the US growth outlook, both of which remain highly fluid in the current context.”
Indian analyst Madhavi Mehta, of Kotak Commodity Services in Mumbai, added that the uncertainty that remains in the market means “safe haven assets like gold and yen may remain supported”.
British Chancellor George Osborne tried to calm the markets in a statement this morning, suggesting there would not be an emergency Budget as an immediate reaction to the Brexit vote. Prior to the referendum, he had indicated that one would be needed.
However, in today’s statement, Mr Osborne said that although the UK economy would require an adjustment, Britain could face the uncertain future “from a position of strength”.