However, Investec said today: “We note, given global market turmoil, that gold is increasingly regaining its status as a safe haven.”
A little help from gradual US interest rate rises this year will also help gold to rise.
The FTSE 100 index tumbled 171.63 points, a near-3% slump, to 5901.71 as Chinese stocks again plummeted, triggering a trading halt.
The repercussions were felt mainly by miners since China is the world’s biggest consumer of raw materials.
Anglo American crashed another 23.55p to 246.85p, with a lower 225p target price from Barclays heaping more pressure on the already beaten-up stock.
The oil supermajors, including BP, down 14.1p at 329.35p, were not immune to the mayhem as Brent crude fell 97 cents to $33.27 a barrel — levels not seen since 2003.
The price of Brent crude sank to its lowest level in over a decade
Beawiharta/Reuters
On the mid-cap index, the miserable start to the year from AO World continued, down 8.4p to 139.6p, as traders bet that its third-quarter update on Tuesday will make for grim reading.
Elsewhere, Premier Farnell held firm, up 1.75p at 102.75p on whispers of a Chinese bid worth 160p a share for the struggling electronic parts distributor.
On AIM, specialist HR consultancy Penna Consulting provided a rare piece of good news among the sea of red, 28.5p better off at 311p as it claimed full-year profits have “materially increased” after a strong third quarter.
Meanwhile, Sierra Leone diamond explorer Golden Saint Resources dropped back 9% to 0.03p after it revealed its planned £250,000 crowdfunding would not happen after it failed to reach the £50,000 minimum.
