By Ese Erheriene and Jasmine Horsey
Gold prices remained buoyant in London Monday, prompted by market turmoil following the U.K.’s unexpected vote to leave the European Union at the close of last week.
Spot gold was up 1.1% at $1,329.55 a troy ounce in European trade, after hitting a near two-year high in the previous session at $1,358.80 an ounce.
Gold has risen 5% since Thursday, after 51.9% of Britons voted to leave the 28-nation trade bloc, versus 48.1% who wanted to remain.
The leave vote, or so-called Brexit, represented a startling rebuke to the establishment and threatened to spark political turmoil in the U.K. and more widely across an increasingly fractious eurozone. Investors flocked to buy the metal, which is viewed as a safe-haven in times of market apprehension.
“There’s a lot of uncertainty around, and it’s not surprising there’s been a pickup in safe-haven buying,” said William Adams, Head of Research at Fast Markets Ltd. “Until there’s less uncertainty I think bullion prices will be supportive.”
On Friday and over the weekend, investors piled into gold in search of a safe place to store their cash as the shock of the referendum results saw global markets descend into chaos.
Users of London-based online bullion platform, BullionVault, traded over £10 million ($13.7 million) in gold by 6.30a.m. U.K. time on Friday, setting a one-day record of £30.0 million by midnight. On Saturday and Sunday, 2,766 trades were executed, including some investors taking profit.
“Our users bought a lot of gold going into this crisis, and some are selling to bank substantial profits from Friday’s shock,” said founder and chief executive Paul Tustain. Elsewhere, the fear of Brexit encouraged demand from investors with little or no experience of financial markets. Gold investment firm The Pure Gold Company has seen a 69% increase in investors buying gold for the first time, including teachers, doctors and retirees.
“We’ve had people abandon plans to buy properties and other investments and to stick their money into gold,” said chief executive Josh Saul. Golds gains were capped by...