By Jasmine Ng, Eddie Van Der Walt, Ranjeetha Pakiam
Gold surged to a two-year high after the U.K. voted to exit the European Union, causing turmoil across markets and boosting haven demand.
Bullion jumped as much as 8.1 percent, the most since the height of the global financial crisis in 2008, before paring some of the gain, and futures trading volume was six times the average for this time of day. As the pound tumbled against the dollar, gold priced in sterling rallied as much as 19 percent and gold mining companies such as Randgold Resources Ltd. advanced.
“The volume we saw last night was unmatched by anything, and we’re nowhere near done,” said Naeem Aslam, chief market analyst at London brokerage TF Global Markets. “The phone’s been off the hook all night. We were around the news wires nonstop.”
Some clients were frustrated that they couldn’t get orders completed quick enough as trades kept being upended by other large positions coming in, Aslam said, as he stepped out of the office for a coffee after working overnight. He said he’s planning to work over the weekend to meet the surge in business.
U.K. voters backed leaving the EU by 52 percent to 48 percent, sending shock waves though markets and prompting Prime Minister David Cameron to resign. European stocks and U.S. futures slid, the pound plunged by a record and...