The stock market plunge has triggered a gold buying spree with a popular fund that tracks the metal accepting the most cash on a single day since the financial crisis on Tuesday.
Index fund provider ETF Securities told Telegraph Money that February 9 saw the most money flow into Gold Bullion Securities, its gold tracking fund, since January 2009. Investors poured in £239m.
James Butterfill, head of research, said investors had become more cautious and were buying gold to shelter from stock market volatility.
He said the firm’s gold products had attracted £500m of new money so far this year.
The surge in demand has pushed the price higher, with spot prices up 16pc since the beginning of 2016, representing the precious metal’s best start to the year since 1980. Gold prices jumped to their highest level in a year on Thursday, gaining 3.6pc at one stage to $1,234.64 an ounce.