Gold has been a safe haven for investors since the UK referendum on Europe
The Tokyo Commodity Exchange will launch
its first physical gold contract on July 25, citing the
popularity of gold as a safe haven from post-Brexit
The Tokyo Commodity Exchange (Tocom) said
on Thursday its new Gold Physical Transaction contract will
begin trading on July 25, pending regulatory approval. The
exchange expects the contract to provide a safe haven for
investors in post-Brexit volatility, it said in a
"Financial markets fell in reaction to the
Brexit vote and the world economy is turning increasingly
uncertain. Hence, gold is in greater demand as a safe asset
that removes credit risk. It is also seen as an effective
inflation hedge and superior for long-term asset protection.
Additionally, gold provides portfolio diversification, since
price movement tends to uncorrelated with equity and bond
prices," the statement read.
This article is available exclusively to subscribers
Please log in to continue reading.
Not yet a subscriber?
Click here to take a free trial.
Already have an account? |
Please fill in your details below and a customer service representative will contact you.