Iron ore has gained pace in markets overnight thanks to concerns over the Brexit’s effect on trade.
The metal is now sitting at US$53.20 per tonne, according to The Steel Index, a 3.5 per cent rise from its previous price point of US$51.40.
As the metal is less exposed to Britain’s upcoming exit from the European Union’s trading sphere, due to both the UK and Europe being relatively small contributors to global commodity demand, JP Morgan analysts explained, the recent referendum will have only a minor impact on commodity markets, Bloomberg reported.
The falling pound, caused by market uncertainty, is also a boon for UK listed miners which report revenue in US dollars.
The gold price has also seen a rally as investors rush to investment safehavens.
“The contagion-related uncertainty that Brexit brings to the global economy is likely to continue to support demand for safehaven asset classes, keeping gold prices high and the US dollar strong relative to the Australian dollar and South African rand,” analyst Douglas Rowlings said in recent notes, according to Bloomberg.