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Gold soars to two-year high after ‘Brexit’ from Europe

KUWAIT CITY, June 24, (KUNA): Gold soared on Friday as much as 8 percent to its highest in more than two years after Britain chose to leave the European Union (EU), an expert said. The UK’s Brexit referendum results have pushed investors to seek protection in bullion and other assets perceived as lower risk, Sabaek Al-Kuwait Company Executive Manager Rajab Hamed said to KUNA. Gold peaked at $1,319 per ounce and was up 5.1 percent on Friday, compared with $1,359 per ounce earlier today, hitting the highest level since March 2014, he added.

He believed that the Brexit vote has triggered an international shock as world interest rate reached nearly zero following the referendum result, depriving policy- makers of how to address this shock. The gold expert suggested that the referendum would have serious reflections on the UK’s unity, especially with Scotland and Northern Ireland which voted to remain in the European bloc. US gold futures went up y 4.7 percent to $1,322.8 per ounce, while silver futures rose by 2.4 percent to $18 per ounce, he added. The UK has voted by 52 percent to 48 percent to leave the European Union after 43 years of membership in an historic areferendum.

London and Scotland voted strongly to stay in the EU but the remaining vote has been undermined by poor results in the north of England. The referendum turnout was 71.8% – with more than 30 million people voting – the highest turnout at a UK election since 1992. Wales and the majority of England outside London voted in large numbers for Brexit.

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