By Ese Erheriene
LONDON—The biggest winner in a “Brexit” could be gold. The price of gold could rally as much as 10% if U.K. voters opt to end the country’s membership of the European Union in a historic referendum Thursday, according to market analysts.
Gold, which has flagged in recent days as polls showed conflicting results about the probability of a British exit from the bloc, gained 8.5% in the first two weeks of June as safe-haven demand picked up. Experts say it could trade even higher at $1,400 an ounce if the leave camp triumphs.
“A vote for Brexit could easily see the gold price surge to $1,400 an ounce,” said Simona Gambarini, a precious metals analyst at Capital Economics.
“Brexit would spark significant physical purchases of gold not just in the U.K. but also from the much larger European market,” said analysts at Société Générale SA in a recent note.
London spot gold was trading down 0.1% at $1,266.40 a troy ounce in afternoon European trade Wednesday, having hit a nine-day low earlier in the session at $1,261.41 an ounce.
Investors have already been piling into the metal since January, largely as a result of “Brexit” concerns. This flow is expected to...