Ruffer's Russell warns of more pain to come for gold

Gold is likely to suffer from further sell-offs in the short to medium term as investors remain focused on an end to quantitative easing, Steve Russell, investment director at Ruffer, has said.

Gold plunged to its lowest level in more than two-and-a-half years yesterday, with investors fleeing the precious metal after Fed Chairman Ben Bernanke said the US economy was expanding strongly enough to start slowing the pace of QE later this year. Gold fell around 6% during trading, plunging through the $1,300 mark, and despite some minor gains this morning it remains below this level, trading at $1,294 currently. Russell and co-manager Hamish Baillie have held gold in the group's flagship CF Total Return Fund and the group's Ruffer Investment Company, an investment trust which mir...