By Cecilia Jamasmie
Gold edged higher Wednesday, trading near its highest level in more than two years amid long-term financial uncertainty following Britain's surprise vote to leave the European Union.
The precious metal traded 0.33% higher at $1,322.20 an ounce in midmorning London and it is heading for its best first-half in more than four decades as investors continue to ditch risk assets and turn instead to havens.
According to analyst Daryl Guppy, there is a strong probability gold will move above $1,340 towards resistance near $1,580. But he warns this upward trend is hazardous and volatile, as it comes with a change in the structure of the gold market.
“This structural change in the market means gold demand is now also closely linked to brokerage account margin calls as gold exchange traded funds (ETFs) are a derivative trading instrument,” he wrote for CNBC.