Gold demand up 21% amid low interest rates and Brexit fears

Demand for gold has spiked by a record 21% in the first three months of the year, as investors seek sanctuary in the safe haven metal in the face of slowing global growth and falling interest rates.

Figures from the World Gold Council show that demand leapt to 1,290 tonnes over the period, driven by the "growing use of negative interest rates".

The council's report said investors are "having to consider alternative investments and currencies" as countries such as Japan and Sweden slash rates into negative territory.

It added that investors in Europe have been "plagued" by lingering Brexit fears, driving demand across the continent.

The report added: "Shifts in the global economic and financial landscape have created a positive environment for gold investment in recent months.

"The negative interest rate environment, migration crisis and rumbling Brexit speculation continued to highlight gold's investment properties, specifically its role as a secure store of wealth."

Exchange traded funds were the main drivers of investment in gold over the quarter.