NEW YORK (TheStreet) -- Shares of NovaGold Resources(NG) - Get Report are advancing 3.53% to $7.03 late Tuesday afternoon as gold prices rally.

For August delivery, gold is up 1.37% to $1,357.40 per ounce on the COMEX this afternoon.

The price of the precious metal is rising today amid higher safe-haven demand in the wake of the U.K.'s recent decision to leave the European Union.

"Over the coming weeks and months the ramifications of 'Brexit' on the global economy will give us a measure of just how much of a Teutonic shift in the world economy it was," Julian Phillips, founder of GoldForecaster.com, wrote in a recent note cited by MarketWatch.

"The most visible impact has been a lowering of the expectations for interest rates and the heightened economic risks to the world," he noted.

Both of these situations help boost the investment appeal of precious metals, such as gold, MarketWatch noted. The metal is non-interest paying and struggles to compete with assets that bear a yield when interest rates are hiked.

NovaGold is a Vancouver-based precious metals company engaged in the development of mineral properties.

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