* Gold surges as Brexit vote unleashes turmoil on markets
* Sterling-, euro-denominated gold soar as currencies plunge
* GRAPHIC-Gold vs currencies: http://link.reuters.com/cyv95s
* GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
(Updates prices; adds detail, second byline, NEW YORK dateline)
By Jan Harvey and Marcy Nicholson
LONDON/NEW YORK, June 24 (Reuters) - Gold soared as much as
8 percent to its highest in more than two years on Friday after
Britain delivered a shock vote to leave the European Union,
sending investors scurrying for protection in bullion and other
assets perceived as lower risk.
In sterling terms, gold delivered double-digit percentage
gains to top 1,000 pounds an ounce for the first time in more
than three years, rallying as much as 21 percent in early trade,
while euro-priced gold rose as much as 13 percent.
Spot gold XAU= peaked at $1,358.20 per ounce and was up
4.9 pct at $1,317.20 by 2:49 p.m. EDT (1849 GMT). U.S. gold
futures GCv1 for August delivery settled up 4.7 percent at
$1,322.4 per ounce, off an early high of $1,362.60 an ounce.
COMEX gold futures volume exceeded 576,850 contracts, their
second highest on record. This represents 57.7 million ounces
worth about $76.3 billion.
"(Brexit) benefits gold because in a general risk-off mode,
it's a natural safe haven for everybody," Marie Owens Thomsen,
chief economist at Indosuez Wealth Management, said.
"Now that the UK has voted to leave, we think there's a
higher probability that the $1,350-1,360 per ounce level can be
breached, and we're therefore looking for an extended target in
the $1,400s."
Gold priced in sterling XAUGBP=R was last at 961.82 pounds
an ounce, up 14 percent, having peaked at 1,019.03 pounds
overnight. Euro-denominated gold XAUEUR=R was up 7.3 percent
at 1,182.47 euros an ounce, off a high of 1,244.34 euros.
"This is just the beginning of pricing in the risk of
Britain leaving the EU, and in the longer term, whether other
countries will try to leave or even if the EU will survive,"
said Joe Foster, portfolio manager and strategist of VanEck
International Investors Gold Fund in New York.
Gold dealers in London reported surging demand for coins and
bars among retail investors on Friday, with some saying stocks
were tight.
Britain's vote to leave the European Union forced the
resignation of Prime Minister David Cameron and dealt the
biggest blow to the European project of greater unity since
World War Two.
Global stock markets lost about $2 trillion in value while
sterling suffered a record one-day plunge to a 31-year low.
MKTS/GLOB
The single currency was under pressure as investors worried
that the Brexit vote could encourage similar movements in other
European countries. FRX/
U.S. short-term interest rates futures hit contract highs in
early U.S. trading, boosting expectations the Federal Reserve
may cut interest rates to help shield the economy from any
global fallout.
"This isn't necessarily about Britain, it's about
uncertainty in the world's largest economy," Amanda van Dyke,
fund manager at Peterhouse Asset Management, said.
"The general commentators are suggesting that the Fed is no
longer going to raise rates because the dollar is soaring, and
they can no longer afford for the dollar to keep going as fast
as it is."
Silver XAG= was up 2.65 pct at $17.73 an ounce, while
platinum XPT= was up 1.83 pct at $977.60. Palladium XPD= ,
the most industrial of the major precious metals, bucked the
trend to fall 2.80 pct at $548.20 an ounce.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
GRAPHIC-Gold vs currencies: http://link.reuters.com/cyv95s
GRAPHIC-2016 asset returns: http://reut.rs/1WAiOSC
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>