(Bloomberg) -- Gold climbed to the highest level in more than two years and silver surged as investors piled into haven assets on concern political turmoil and the U.K.'s decision to leave the European Union will limit global growth.
Gold for immediate delivery advanced as much as 1.1 percent to $1,371.39 an ounce, the highest level since March 2014, and traded at $1,367.64 by 10:07 a.m. in Singapore, extending gains to a sixth session. Silver increased as much as 2.4 percent to $20.4103 an ounce and traded at $20.2469.
“Investors are pouring money into gold as there's increasing anxiety over the global economic outlook as well as political uncertainty,” said Wu Zhili, Shenzhen-based analyst at Shenhua Futures Co. “The accommodative stance of central banks is also favorable for commodities, especially precious metals.”
Precious metals are advancing as investors shun risk assets amid market turbulence in the aftermath of the U.K. vote to leave the EU. The decision is dimming prospects of the Federal Reserve raising U.S. interest rates this year and has prompted speculation that further stimulus may be likely from the European Central Bank and the Bank of Japan. Negative rates in Europe and Japan have boosted the lure of bullion.
Gold assets in exchange-traded funds surged 2 percent to 1,997.28 metric tons on Tuesday, the highest since 2013, and have increased 37 percent this year, according to data compiled by Bloomberg.
Open interest, a tally of outstanding contracts in gold futures on the Comex in New York, climbed to the highest on Friday since November 2010. In the week ended June 28, money managers boosted their net-long positions on the precious metal to the highest since data started in 2006, U.S. Commodity Futures Trading Commission data show.
To contact Bloomberg News staff for this story: David Stringer in Melbourne at dstringer3@bloomberg.net, Feiwen Rong in Beijing at frong2@bloomberg.net. To contact the editors responsible for this story: Jason Rogers at jrogers73@bloomberg.net, James Poole
With assistance from David Stringer, Feiwen Rong
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