World Gold Council: gold price soars in wake of Brexit

The price of gold bullion has surged following the UK’s decision to leave the EU in last week’s referendum, according to the World Gold Council (WGC).

The council said the price of gold jumped to $1,315.50/oz (£988/oz) on 24 June, following the announcement of the referendum.

Gold was up 4% from the day before, and up 24% since the beginning of the year. Meanwhile, the pound sterling fell to a 31-year low and world equity markets plummeted.

A statement from the WGC read: “With Britain voting to exit the EU, we expect to see strong and sustained inflows into the gold market driven by the staggering level of protracted uncertainty that investors now face.

“The Bank of England has said that it stands ready to take whatever action is necessary, a mantra that is likely to be repeated by other central banks. In practice, this could mean interest rates move further into negative territory in parts of the world, another positive for gold.

“Central bank action has already capped the gain in other safe haven assets, with the Swiss National Bank intervening early this morning.”