Schroders Bank trims gold exposure: Should you?

The head of asset allocation at Schroders Private Bank has cut back clients' exposure to gold amid fears the price has further to drop.

While headwinds remain for equity markets, which could well send the precious metal soaring back to record highs, Schroders' Robert Farago warned gold was susceptible to a sell-off. Gold has climbed in value by 14.6% in the last year, and stands at $1,670 currently, although it has traded at over $1,900 an ounce during that period. However, despite a recent sell-off which has seen it fall back, Farago warned there were a number of reasons investors should still tread carefully. "Three concerns lead me to trim positions. First, the strong performance over the last eleven years means...