Over the past few months, media reports and official filings have shown a shift in some leading investors’ allocations to currencies.
And it’s not in the direction you might think. Gold, as one investor put it, has become one of their largest ‘currency allocations’. With central banks in much of the world desperately trying to stoke inflation with low rates, the appeal of most major currencies has faded.
Combine that with uncertainties regarding ‘Brexit’, China and global equity prices, and gold’s place in portfolios has gained importance. So far, it looks like those bets are paying off. Since the beginning of June, gold is the second best performing ‘currency’ among the majors.
Copyright © 2016 CIBC, eFXnews™Original Article
