A relatively muted response to Brexit

Unsurprisingly, the prices of most commodities have fallen in the wake of the UK’s vote to leave the EU. The main exception is gold, which has benefitted from renewed safe-haven demand as well as the expectation that the uncertainty created by the UK vote could mean that interest rates stay lower for longer, notably in the US. That said, with falls of less than 5% on Friday, the more industrial commodities have actually outperformed other “riskier” asset classes.