Whatever Britons Decide, Bet on Gold’s Volatility to Profit
- SocGen lists trading strategies for commodities ahead of poll
- Bullion volatility is seen rising irrespective of the result
Investors Flee to Gold as Brexit Looms
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Societe Generale SA has come up with a way for investors to profit from the U.K.’s referendum on whether to remain in the European Union whatever the outcome: bet on a jump in gold volatility.
Swings in bullion should increase whether voters choose to remain in or sever ties with the world’s largest trading bloc, according to a note from the bank that lays out trading strategies. Investors could go long on a so-called gold-variance swap, which gains in value as volatility increases, Mark Keenan, head of commodities research for Asia, told Bloomberg Television on Wednesday.