By Eddie Van Der Walt and Ranjeetha Pakiam
Gold advanced as investors bet central banks would have to continue supporting the global economy in the wake of Britain’s vote to quit the European Union.
In the three days since the vote, holdings in exchange-traded funds have jumped 1.9 percent, the biggest increase since the beginning of March. Bullion for immediate delivery rose as much as 0.9 percent and traded at $1,317.26 an ounce by 11:09 a.m. in London, according to Bloomberg generic pricing.
Gold is trading near its highest level in more than two years and is heading for its best first-half in more than four decades while investors abandon risk assets and turn to havens. Federal Reserve Governor Jerome Powell said Tuesday that global risks have shifted further to the downside after the referendum, introducing new uncertainties that may merit reassessing monetary policy.
“The bull is in control,” said Ole Hansen, head of commodity strategy at Denmark’s Saxo Bank A/S. “Gold has been in all the news as the place to be and investors have responded, particularly with the market now pricing out a U.S. rate hike until 2018.”