Chart of the week: gold’s record surge against sterling

As the EU referendum results emerged, gold rose more than 6% overnight in dollar terms as nervous investors piled in. Priced in sterling, the overnight jump was 22%, a record move.

800COTW-gold-price

As the EU referendum results emerged, gold took off like a rocket, gaining more than 6% overnight in dollar terms as nervous investors piled in. Priced in sterling, which was hurtling downwards, the overnight jump was 22%, a record move, according to Adrian Ash at online gold investment service BullionVault.com, which saw record transaction volumes on Friday. The sterling price has eclipsed £1,000 an ounce, a three-year high.

The traditional safe haven got a big boost early this year too, thanks to the global growth scare. In sterling terms, it has gained a total of 40% in 2016.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up