Gold and crypto: competitors or collaborators?

Unprecedented stimulus measures and low interest rates last year have benefited gold as investors chased the yellow metal as a safe-haven and a hedge against inflation. In 2020, the gloomy global economic outlook and the weak USD helped gold seal its role as a store of value. Bullion prices denominated in USD rose 35% last year, breaking through historical highs of US$1,900 before giving up some of its hefty gains. Bullion set a new record price of US$2,070 ($2,780) in 2020.

In fact, the last decade has been the best for gold, as central banks globally embraced looser monetary policy to boost growth. Brexit, political and social unrest in regions from Chile to Hong Kong, and buying sprees from key central banks and investment funds have also helped to support prices.

Phillip Futures offers over-the-counter (OTC) and exchange-traded gold. Traders from various trading hubs access both electronic and voice broking facilities due to market leading prices and tight spreads. Gold contracts are offered in a variety of currency denominations other than the USD, for example, the TFEX gold futures priced in baht and BMD gold futures in ringgit, so savvy traders benefit from currency fluctuations and contract value anomalies.