Gold bulls rethink positions on fears of long-term bear market

Multi-asset managers have cautioned against buying back into gold, arguing the precious metal ‘momentum trade' no longer exists.

The yellow metal has sold off considerably in 2013, falling 22% year-to-date to trade just below $1,300, amid concerns over a winding down of quantitative easing in the US. Last month gold slipped into bear market territory, having dropped 32% since its peak in August 2011, when an ounce was worth $1,895. However, a number of multi-asset investors have ruled out buying back into the metal despite the steep falls, suggesting gold has lost its shine as a value investment. Mark Harris, manager of City Financial’s multi-manager fund range, said after being a gold bull for the past deca...