Investing.com - Gold prices jumped to the highest level since March 2014 on Wednesday, as fears over the Brexit fallout again took a toll on markets, sending investors flooding into safe haven assets.
Gold for August delivery on the Comex division of the New York Mercantile Exchange rose to an intraday peak of $1,377.50 a troy ounce, a level not seen in more than two years. It last stood at $1,372.15 by 12:40GMT, or 8:40AM ET, up $13.45, or 0.99%.
A day earlier, gold rallied $19.70, or 1.47%, as investors scurried into safe-haven plays amid heightened fears of the broader impact of Britain's vote last month to exit the European Union.
Concerns that financial and political instability in Italy could lead to even more chaos in Europe spooked investors further.
Gold has been well-supported in recent weeks amid fading expectations of a Federal Reserve rate hike in the next couple of months and as expectations mounted that central banks around the world will step up monetary stimulus to counteract the negative economic shock from the Brexit vote.
Expectations of monetary stimulus tend to benefit gold, as the metal is seen as a safe store of value and inflation hedge.
The yellow metal rose almost 9% in June, its biggest monthly increase since February. Prices are up nearly 27% so far this year, completing one of its strongest first halves on record.
The Federal Reserve will release minutes of the June 14-15 policy meeting on Wednesday at 18:00GMT, or 2:00PM ET, as investors search for some clarity on where the U.S. central bank stands on its path toward rate hikes.
The Fed kept interest rates unchanged at that meeting and dialed back forecasts for how fast it will raise rates over the next couple of years, citing concerns over the economic outlook and said it was on watch for the result of the Brexit referendum.
Also on the Comex, silver futures for September delivery rose 28.1 cents, or 1.41%, to trade at $20.18 a troy ounce. On Monday, prices spiked to $21.09, the most since July 2014.