Regulators remove restrictions to allow greater allocation in gold-backed funds, signaling liberalization of commodity investment rules.
Singapore regulators will eliminate the 5% cap on physical gold holdings in investment funds, enabling greater exposure to the precious metal. The move aims to attract more commodity-focused funds to the city-state’s asset management sector.
Previously, funds were limited to holding no more than 5% of assets in physical gold, a rule that constrained gold-backed exchange-traded products. The change aligns with broader efforts to enhance Singapore’s role as a global financial hub.
No immediate market reaction was reported following the announcement, though analysts expect increased inflows into gold-related instruments.