Managers stand behind tumbling gold asset class

Gold fundamentals as a currency hedge remain intact

By Beth Brearley While the past couple of weeks have seen the price of gold tumble against resurgence in investor risk appetite and a decline in jewellery demand, fund managers maintain fundamentals for the asset class remain intact. Gold surpassed $1,000 an ounce in February this year reaching an 11-month high, but has since dropped around 13%, with spot gold now trading at $895.70 per ounce. According to Lipper FMI research, 60% of gold is sold for jewellery, mainly in Asia, but when the gold price is high these sales diminish, which has been happening recently. However, India - t...