Australian gold miners surged today amid renewed fears over the impact of Brexit, the UK’s withdrawal from the European Union.
The increased demand comes as investors seek the traditional safe-haven of gold. The spark was the news that UK property trusts Aviva, Standard Life and The Pru had suspended redemptions.
A short time ago, Evolution was up more than 7% to $2.97, St Barbara almost 7% to $3.57, Oceangold 5.5% to $5.74 and Northern Star almost 4% to $5.75.
The rest of the market is on a slide, following a rout on global markets. A short time ago, the ASX 200 was at 5,195.30, down 32.70 points or 0.63%.
The banks are all down more than 1% with the ANZ dropping 1.8% to $22.970. BHP fell 3.7% to $18.73 and Rio Tinto 2% to 446.81.
Bullion prices are up more than 25% so far this year and HSBC analysts expect gold prices to remain solid for the rest of 2016 with Brexit a boost to demand.
“We remain mildly bullish, but do believe that prices are close to a ceiling,” writes James Steel, HSBC’s chief precious metals analyst, in a note to clients.
HSBC forecasts $US1275 an ounce for 2016, rising to $US1310 in 2017.