Gold prices were still sitting well above $1,300 per ounce Friday morning in the wake of the Brexit on Thursday. Prices were as high as $1.339.20 per ounce after Brits voted 51.7 to 48.3 percent to leave the European Union.
As of 12:52 p.m. EST on Friday, prices for the yellow metal were sitting at $1,316.20 per ounce. “Gold is living up to its reputation as a safe haven,” stated Commerzbank in a note to clients, stating that gold’s recent gains constitute the steepest daily percentage increase since the global financial crisis in 2008.
Investors also piled into gold mining stocks. Both the Market Vectors Gold Miners ETF (NYSEARCA:GDX) and the Market Vectors Junior Gold Miners ETF (NYSEARCA:GDXJ) spiked on Friday morning, with both up a healthy 6 percent as of 12:59 p.m. EST.

A number of analysts are forecasting that gold’s positive momentum will continue. Rob Chang, managing director and head of metals and mining, Canada, at Cantor Fitzgerald, stated that gold may test the $1,400 level in the near future as the flight to save haven assets continues. “Since Brexit has serious ramifications that will be felt over time for the EU, we do not expect this to be a short-term move as the risk-off trade will be very popular,” he wrote.
Similarly, Commerxbank expects uncertainty in the political arena to lend support to gold over the next few months. “Even though the situation is likely to calm down gradually following the first reaction, the “Brexit” issue is bound to preoccupy the markets for some time to come,” the firm stated. “After all, people are already asking which EU member state will be next to hold an exit referendum.”
For its part, UBS had previously highlighted $1,300 as a “make or break level,” and sees gold moving higher still after Thursday’s surge. “A break of $1300 represents a bullish trend continuation breakout and suggests a next target at $1380 to 1483,” it stated.
Gold equities are expected to continue their positive performance as well. “In the mining world we expect precious metals names to have great strength. Especially producer and near term producers,” Chang stated. “Those in our coverage list best positioned to capitalize are Primero Mining (NYSE:PPP), Avino Silver & Gold Mines (NYSE:ASM), and Premier Gold (TSX:PG). Near term producer Pershing Gold (NASDAQ:PGLC) will also have tailwinds.”
Major players in the gold space saw their share prices rise on Friday; Goldcorp (TSX:G) was up 6.14 percent to $23.83, while Barrick Gold (TSX:ABX) was up 7.41 percent to $26.52.
Junior gold mining stocks that saw a boost in share price included:

• Orex Minerals (TSXV:REX); up 9.33 percent to $0.82 per share
• Brixton Metals (TSXV:BBB); up 7.14 percent to $0.75 per share
• Pure Gold Mining (TSXV:PGM); up 7.69 percent to $0.70 per share

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Securities Disclosure: I, Teresa Matich, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Brixton Metals is a client of the Investing News Network. This article is not paid for content.