Gold benefits as investors search for safety
Metal jumps to its highest in nearly eight weeks as excerpts of a speech to be given later by Britain’s prime minister point to a definitive exit from the EU
London — Gold jumped more than 1% to its highest in nearly eight weeks on Tuesday, as excerpts of a speech to be given later by Britain’s prime minister pointed to a definitive exit from the EU. Safe-haven assets such as gold, the Japanese yen and US treasuries benefited as investors sought refuge from the uncertainty of what a "hard Brexit" would mean for global markets. Spot gold rose 1.1% to $1,216.11/oz by 10.54am GMT, near highs last seen on November 23. US gold futures were up 1.3% at $1,211.80/oz. The dollar, against a basket of major currencies, fell 0.3%. "It’s the uncertainty on Brexit that has created the risk-off environment which has benefited gold," said Société Générale’s head of metals research, Robin Bhar. "No one knows what it really means coming out of the single market, the customs union and allowing free movement. These are factors whose impact we are not going to see for some time." Gold is often seen as an alternative investment during times of geopolitical an...
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