Trader’s Timeout: Brexit Fury Lays Waste to Equities as Gold Trade Solidifies
Posted: Tue Jun 28, 2016 1:20 pm
This article was written by Evdokia Pitsillidou, Risk Management Associate at easyMarkets.
Britain’s vote to leave the European Union unleashed chaos on the global financial markets, triggering the biggest two-day selloff in the history of equities. It therefore, came as no surprise that gold – the world’s preferred hedge against uncertainty – spiked to new two-year highs last week as investors looked for stability in a sea of market uncertainty.
Spot gold spiked more than 5% in the first two days after Brexit, reaching its highest level since July 2014. ‘Fear trade’ pushed the yellow metal up ... (read more)