Gold surged the most since the height of the 2008 global financial crisis 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 and futures trading volume was three 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 mining companies such as Barrick Gold Corp. and Newmont Mining Corp. advanced.
“We’re still seeing strong volumes across the precious metals space, which should be expected based on risk-off positioning” by investors, Maxwell Gold, a director of investment strategy at ETF Securities, which sells exchange traded funds backed by gold and other precious metals. “Global focus should reshift back more towards the longer-term impact from the Brexit and how this might potentially delay the Fed” from raising interest rates, he said.
Some clients were frustrated that they couldn’t get orders completed quick enough as trades kept being upended by other large positions coming in, Naeem Aslam, chief market analyst at London brokerage TF Global Markets 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.
“The volume we saw last night was unmatched by anything, and we’re nowhere near done,” Aslam said. “The phone’s been off the hook all night. We were around the news wires nonstop.”
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