Its price has risen 8 percent since the Brexit vote
On July 6, gold prices soared to more than $1,350—its highest in 28 months—fueled by uncertainty over the Brexit vote in the United Kingdom.
It is another sign of a remarkable comeback for the yellow metal, which last year at this time was trading at around $1,100 an ounce. While it has been a good year for gold—its price has increased 24 percent since the beginning of the year—its rise has gained steam following Great Britain’s June 23 vote to leave the European Union. Since then, it has climbed $100 or more than 8 percent.
A note from UBS strategist Joni Teves, quoted by Business Insider, argued that gold had “entered a new phase” as uncertainty grows around the macro environment.
Teves predicts that gold will hit $1,400 an ounce in the short term and believes the metal will trade around $1,340 for the rest of the year.
Helen Lau, an analyst at Argonaut Securities in Hong Kong, told Fortune: “No one is able to understand how much risk is yet to be unraveled (from Brexit). That is an uncertainty that no one likes. This is what is driving gold prices higher.”
At press time, the spot price of the metal was $1,364 an ounce.