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Yen outshines gold as a risk hedge, Goldman says

Japanese currency now undervalued compared with most safety assets

With gold positioning becoming more stretched, the yen "might be a more attractive hedge," Goldman said. (Photo by Takuya Imai)

NEW YORK -- The yen has emerged as a more attractive hedge than gold to protect against growth and rate shocks, according to Goldman Sachs.

The Japanese currency is undervalued compared with most safety assets, Goldman said in a research note Monday. And while gold has "materially outperformed" it after the precious metal's rally since the end of May, calls on gold have become "much more expensive," it said.

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