The price of gold rose to its highest level in nearly seven years and global equities slid as tension in the Middle East fuelled demand for safe places to warehouse cash.
Investors moved into assets seen as havens on Monday as they awaited any Iranian response to the US killing of a senior Iranian commander, sending the Japanese yen higher and extending a sell-off in global stock markets.
Gold rose as much as 2.3 per cent to $1,580 a troy ounce, its highest level since April 2013, before trimming those gains to trade 1.4 per cent higher. The rise in the precious metal’s price boosted the shares of producers. Harmony Gold climbed 3 per cent, while London-listed Polyus International advanced 1 per cent, Barrick Gold rose 1 per cent and Newmont Goldcorp climbed 1.5 per cent.