LONDON (Reuters) - Gold surged nearly 4 percent on Thursday to its highest in a year as fears about financial instability, a lower dollar and U.S. Treasury yields persuaded investors to seek refuge in the precious metal.
Traders said financial instability fears were fuelled by European bank shares slumping to multi-year lows, with concerns mounting over banks' profitability in a low-growth and low-interest rate environment.
Spot gold jumped as much as 3.6 percent to $1,240.90 an ounce, its highest since February 2015, and was up 3 percent at $1,233.70 at 1254 GMT. It is on track for its biggest daily rise since Dec. 1, 2014.
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