Investors turn to sterling assets as 'safe havens' disappoint

Gold suffered largest drop in sentiment

Investors are steering clear of "safe haven" asset classes and piling into sterling-denominated investments, as gold and commodities see punishing declines.

A recent investor sentiment index published by Lloyds Bank Private Banking found gold saw the largest drop in sentiment in August since May 2013, while sterling-denominated assets witnessed the strongest demand since the survey began in March that year. Falls in the price of gold have caused the asset class to drop from being the second strongest in July to the fifth weakest in August, the survey showed. In contrast, sterling-dominated assets benefitted as the British currency strengthened against the US dollar. Most popular with investors was UK property, followed by UK equities, UK ...