Investors frantically purchase Gold ETPs after Britain delivered a shock vote to leave the European Union with inflows of US$201m on Friday alone. US$180mn redemption in Short GBP ETPs following the vote. Long crude oil ETPs experienced limited outflows, whilst oil prices settled 5% lower on Friday.

ETF Securities has adjusted its fair value target for gold to $1400, amid a surge in appetite for the precious metal.

Results from the UK's referendum on membership of the European Union (EU) indicate that voters have decided the UK should leave the EU. This result is likely to have wide political, economic and financial market repercussions, leading us to alter our economic and market forecasts and, potentially, our asset allocation.

The initial flight-to-quality reaction across asset classes has been exacerbated by the market's misplaced confidence in a “Remain” victory leading up to the vote.

UK voters have chosen by a narrow margin to leave the European Union. The outcome of the UK vote is initially a major shock for markets, and could in the long run damage economic growth and cause more political risks. Brexit puts further pressure on risky assets, oil prices and the British pound. Outcome could trigger further quantitative easing.