Gold funds were standout winners in August as investors' appetite for risk waned amid concerns of a tapering of monetary stimulus in the US and potential military action in Syria.
The price of gold, which is traditionally viewed as a 'safe haven' asset, rose by 3.9% (in sterling terms) in August, building on a strong recovery in July. However, gold has fallen over the past few days due to prospects of military action against Syria easing. The spot gold price fell by as much as 1.6% on Monday to $1,373.38 an ounce, falling for a third day to the lowest level since August 23. The FTSE Gold Mines index rose 8.9% in August. However, investors should note gold mining shares are still down 44% this year even after the rebound experienced over the last few weeks. G...
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