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Investors stay away from gold as confidence shatters

Since Monday's slide, it has largely underperformed even in the face of seemingly positive news

Published Thu, Jul 23, 2015 · 09:50 PM

London

INVESTORS seeking alternative assets are moving on from gold, whose failure to perform when its price was expected to rise and recent volatility as demonstrated by Monday's price plunge are prompting them to seek returns and protection elsewhere.

While the market's bedrock of jewellery buyers and central banks has largely stayed intact, the wider investment universe long courted by banks and gold bugs is now once-bitten, twice shy.

Gold prices, becalmed since February after two years of losses, fell to their lowest in five years on Monday as heavy fund liquidation in Asian hours pushed prices down through key chart levels, triggering a wave of stop-loss selling.

At its Monday low, it had erased half the gains from a 12-year bull rally that ran from 1999 to a record high near US$2,000 a…

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