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Gold climbed to the highest level in more than two years and silver surged as investors piled into haven assets on concern political turmoil and the U.K.’s decision to leave the European Union will limit global growth. Silver futures in Shanghai traded near the highest since 2013.

Gold for immediate delivery advanced as much as 1.1 percent to $1,371.39 an ounce in London, the highest level since March 2014, and traded at $1,368.70 by 12:33 p.m. in Singapore, extending gains to a sixth session. Silver increased as much as 2.4 percent to $20.4103 an ounce and traded at $20.2830. Futures for the metal in Shanghai increased 2.1 percent as volume climbed.

“Investors are pouring money into gold as there’s increasing anxiety over the global economic outlook as well as political uncertainty,” said Wu Zhili, Shenzhen-based analyst at Shenhua Futures Co. “The accommodative stance of central banks is also favorable for commodities, especially precious metals.”

Precious metals are rising as investors shun risk assets amid market turbulence in the aftermath of the U.K. vote to leave the EU. The decision is dimming prospects of the Federal Reserve raising U.S. interest rates this year and has prompted speculation that further stimulus may be likely from the European Central Bank and the Bank of Japan. Negative rates in Europe and Japan have already boosted the allure of bullion.

Gold assets in exchange-traded funds surged 2 percent to 1,997.28 metric tons on Tuesday, the highest since 2013, and have increased 37 percent this year, according to data compiled by Bloomberg. Investment has climbed to a record in Huaan Yifu Gold ETF, the largest such fund in China. Holdings in global silver exchange-traded funds rose to an all-time high last month.

Open interest, a tally of outstanding contracts in gold futures on the Comex in New York, climbed to the highest on Friday since November 2010. In the week ended June 28, money managers boosted their net-long positions on the precious metal to the highest since data started in 2006, U.S. Commodity Futures Trading Commission data show.

Not everyone expects further big increases in gold. The risk of Britain leaving the European Union is now priced in and with the metal more expensive, physical demand is suffering, according to James Steel, an analyst with HSBC Holdings Plc in a Bloomberg Radio interview with Tom Keene. He sees gold peaking near $1,400 this year.

Gold is one of the few good hedges right now, and that means it is poised to go "much higher," BlackRock's Russ Koesterich said Tuesday.

"The reality is we are in an environment where the economy is slow, volatility is likely to be heightened. In that volatility, you need some hedge in your portfolio and there are few of them that work as reliably as gold," he told CNBC's "Closing Bell."

Because gold produces no income, there would be a huge opportunity cost if investors had a lump of gold in their portfolio when real rates are high, he said. However, with real rates low and increasingly negative, the opportunity cost is much lower — which makes gold a more reliable hedge, he explained.

"Gold is an effective hedge, not just against equity risk but also against credit risk and in an environment in which real rates are low and now increasingly negative, gold does an even better job in that role," he said.

Reference: CNBC, Reuters