Global demand for gold bars and bullion coins has surged to the highest level since the collapse of Lehman Brothers in 2008 as investors, particularly from Germany, seek refuge amid volatile financial markets in Europe.
The demand surge helped push gold prices to within a whisker of their all-time high yesterday. Spot gold in London surged to $1,223.90 a troy ounce, the highest level for the year and just below December's record of $1,226.10.
Gold prices in euro terms yesterday hit a fresh all-time high of €963.10 an ounce, up almost 26 per cent since the beginning of the year. In Frankfurt, gold sellers said that demand late last week was three to four times normal levels.