The gold market started Thursday on a high note, with the metal surging up over 2% and prices hitting a new 2-year high of $1.316.80 an ounce. The surge comes after the statement from the Federal Reserve yesterday that was seen as dovish by most, and on demand for a safe investment at a time of volatility for global stock markets and falling government bond yields globally.

The risk aversion tactic of investing in gold may continue in the coming week too, with investors awaiting Britain’s vote on whether to leave the European Union next week. As it stands, polls are showing that more citizens are on the “leave” side than the “stay” side, which is furthering fears of uncertainty in the global markets. This anxiety is also pushing bond yield rates to new lows, which in turn is making gold a more favorable option as a safe-haven investment.

As next week’s Brexit votes comes closer and market watchers continue to digest the Federal Reserve’s statements, we may see high market volatility overall, and potentially more increases in gold prices, especially if bond yields stay at such low levels. Investors should stay wary of all the current economic trends and factors, especially in the coming weeks, and continue to turn to Zacks for investment help and advice to brave uncertain times in the global market.

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