Going for gold: Transactions for bullion soar ahead of Brexit vote

 
Jake Cordell
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Gold has been in very high demand over the last month
Gold has been in very high demand over the last month (Source: Getty)

The flight to safe havens ahead of the EU referendum has led to a surge in transactions for gold bullion as the 23 June approaches.

According to the Royal Mint there has been a 32 per cent jump in the number of transactions compared to last month, as sharp volatility on the stock markets and in foreign exchange rates has pushed investors towards traditional safe havens.

A flurry of new buyers has pushed the price of gold up by 21 per cent this year to $1,315 (£894) per ounce. Nearly half of that increase has come in the last month.

Experts have predicted the price of gold could climb another six per cent to pass $1,400 by the end of the month.

The rush to safe havens also pushed government borrowing costs to the lowest levels on record ahead of the vote. Yields on 10-year UK debt touched 1.15 per cent last week, while German 10-year bunds turned negative for the first time in history.

A number of opinion polls showing the tide turning back towards Remain this week, however, has put some momentum behind riskier assets. The FTSE 100 climbed three per cent yesterday while sterling is today on course for its highest close against the dollar of 2016.

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