Gold priced in sterling soared to a record high on Monday, spurred by fear of a disorderly British exit from the European Union and a generalized flight to safe-haven assets that intensified with rising U.S.-China trade tensions.
Gold priced in the British currency has rocketed 25% since early May to a peak of 1,209.55 pounds an ounce, beating its previous record of 1,204.63 pounds set in 2011.
Gold's value has surged broadly this year as concerns over trade wars and a global economic slowdown rippled through financial markets. [GOL/]
Those fears pushed investors toward assets they think could weather market shocks and forced central banks to freeze or cut interest rates, lowering bond yields and making non-yielding gold more attractive.
Prices in benchmark U.S. dollars have rallied 15% since May to 6-year peaks above $1,450 an ounce and are at record highs in currencies including the Canadian and Australian dollars and India's rupee.
(GRAPHIC - Gold prices in various currencies: https://tmsnrt.rs/2YqKGDx)
In Britain, 10-year bond yields sank to record lows -- a fall that could continue if, as investors expect, the Bank of England cuts rates in the coming months.
The pound has also fallen its the lowest since early 2017 against the dollar, helping to account for the faster rise in sterling-priced gold.