Investing.com - Gold prices rallied to a two-year high on Friday after a shock U.K. vote to exit the European Union sent investors flooding into bullion and other safe haven assets.
Gold for August delivery on the Comex division of the New York Mercantile Exchange settled at $1,318.50 a troy ounce, up 4.39% after hitting peaks of $1,358.20. It was gold’s largest one day gain since September 2013 and the highest close since August 2014.
The U.K. voted by nearly 52% to 48% on Thursday to break away from the world's biggest trading bloc.
British Prime Minister David Cameron, who had backed the failed Remain campaign, stepped down after the final referendum result was announced.
The decision heightened fears over the outlook for the global economy and triggered historic falls in stocks and currencies.
The precious metal is up almost 25% for the year to date, boosted by concerns over global growth and the adoption of negative interest rates by central banks.
Gold has also been boosted as the Federal Reserve cut projections for the number of interest rate increases planned for this year.
Lower interest rates tend to help gold, as the metal pays its holders nothing, but it struggles to compete with yield-bearing investments when interest rates rise.
In the week ahead, market volatility is expected to remain high after global stocks saw more than $2 trillion wiped off their value on Friday and the pound fell by as much as 10% amid the fallout from the Brexit vote.
Federal Reserve Chair Janet Yellen is due to speak at an ECB central bank conference in Portugal on Wednesday, with investors looking for indications on how Brexit will alter the outlook for the U.S. economy and the path of interest rates.
The U.S. is to release revised estimates on first quarter growth on Tuesday.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Monday, June 27
New Zealand is to release data on the trade balance.
Tuesday, June 28
The U.S. is to release final data on first quarter growth as well as a private sector report on consumer confidence.
Wednesday, June 29
Japan is to release data on retail sales.
In the euro zone, Germany and Spain are to produce initial estimates on consumer inflation.
The U.K. is to release data on net lending.
The U.S. is to report on personal income and spending and pending home sales.
Fed Chair Janet Yellen and other central bank heads are to attend the ECB central bank conference in Portugal.
Thursday, June 30
Germany is to report on unemployment change.
The U.K. is to release data on the current account.
The euro area is to unveil its preliminary inflation estimate for June.
The ECB is to publish the minutes of its latest meeting.
Canada is to report on monthly GDP growth.
The U.S. is to release data on jobless claims.
Friday, July 1
Japan is to release data on household spending, inflation and manufacturing and service sector activity.
China is to release official data on manufacturing and service sector activity as well as the private sector Caixin manufacturing index.
The U.K. is to release data n manufacturing activity.
The Institute of Supply Management is to report on U.S. manufacturing activity.