Stock market woes and fears over an ailing global economy have given a boost the price of gold, pushing it over the $1,200 line for the first time since June 2015.
The yellow metal added to gains made over the last week, it’s best in over two years.
The so-called safe haven is often used by investors as a store of value when stock markets and economies are volatile due to its enduring high price.
The health of emerging markets and China’s economy, tumbling oil prices and increased uncertainty over interest rates in the UK and the US have all added to investors ploughing cash into the metal.
The rising threat of a US recession has also pushed investors into gold.
Gold has risen by 11 per cent so far in 2016, the best performing asset on the Bloomberg Commodity Index.
Jasper Lawler, market analyst at CMC Markets said: “Gold continued its blistering good form, jumping 1.5 per cent to its highest since October 15. Gold has risen on haven demand, generally reduced expectations of a Fed rate rise and Chinese government reserve accumulation. There has been increasing talk of a recession so gold is a natural beneficiary.”
Closely tied to the gold price, South African mining stocks have rallied to a near three-year high.
The FTSE/JSE Africa Gold Mining Index is up by 7.3 per cent to its highest since April 2013.
African miner Pan African Resources is up 14 per cent and AngloGold Ashanti trading up 10 per cent.
Gold miner Randgold Resources said earlier today that last year was “one of the best in its history”, after it posted record-breaking production levels.
Production rose by six per cent over the course of the year to 1.2m ounces, however profits dived as gold recorded a price slump over the last 12 months.
Profit fell by just over 21 per cent on the year to $212.8m.