ETF Securities has adjusted its fair value target for gold to $1400, amid a surge in appetite for the precious metal.
Townsend Lansing, Head of ETCs at ETF Securities says the referendum result has sparked a $200m surge in appetite for gold, as investors fled to safe havens.
“We have seen a whirlwind since the early hours of Friday, with inflows nearing $200m, and there is no sign of appetite for precious metals diminishing in the first full week of the Brexit era,” he said.
“Before the referendum, we saw record inflows into our short GBP products, as clients looked to hedge Brexit risk. Some of those clients are unwinding that hedge, while others are looking to take tactical FX positions on both GBP and EUR crosses,” he added.
“Finally, investors are looking at short or leveraged equity products, in particular the 2x and 3x short FTSE 100 products in order to capitalise on uncertainty on UK equities.”
Next Finance , June 2016
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