On Wednesday 6th July gold hit its highest in more than two years, by virtue of uncertainty, drop in stock markets and slide in some bond yields to record lows after Britain’s vote to leave the European Union (Brexit). Post the rise, gold rates having reached to $ 1367.104 per troy ounce (31.10 g) is the highest record after 2014. 
Gold’s record breaking leap proved profitable to companies in gold sector, with a rise between 4 to 7% in the shares of top companies.UBS international news organisation claimed gold rates will rise to $ 1475 by 2019.
Britain’s exit decision from European Union accelerated events in International economy. US Central Bank Federal Reserve has decided to hold on to the interest rates until outcomes of Brexit are much clear. This results a steep drop in the interest rates of loan bonds. Yields on U.S. Treasuries, the benchmark for bonds worldwide, hit record lows out to 30 years on Tuesday
Alongside, due to Brexit, companies and Institutional investors of Britain are having become uncertain created strong repercussions on the stock market as fears about the impact of Brexit on economic growth gripped global markets and underpinned demand for safe-haven bonds. Britain’s currency pound dropped to a fresh 31-year low against the US dollar.
Due to these events investors are in search of secured alternative, many might instead opt to trade in gold-mining shares, which tend to move in line with the gold price – and can even rise at an even faster rate. However, they are also prone to volatility like any other share.Since the beginning of the year gold rates continued to rise witnessing more than 15% rise within the first three months.
It is observed that International economy is not moving forward as expected, the major news organisations indicated recession to continue. Due to this Central Banks along with the leading investors having turned their focus to gold which increased its demand. As the demand increased, rates have also been on higher side with possibility of the trend remaining same for the next few months are indicated. Countries like China and Russia in past few years have seen to be focusing on increasing their gold reserves.
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