Is gold now a fully-fledged risk asset?

With the spot price of gold at year lows even as equity markets grow nervous over the eurozone once again, analysts are divided on the precious metal's prospects as a safe haven.

Some of the UK's canniest investors, including Troy's Sebastian Lyon and Jupiter's Merlin team, have long used gold exchange-traded funds in their portfolios as a hedge against uncertainty. But since the start of 2012, the price of the precious metal has been moving in sync with riskier assets, and bullion has now fallen 14% since 28 February, even as equity markets have begun to pull back from post-stimulus highs. The gold price reached a record high of $1,920 a troy ounce last year, but continued falls in recent weeks have seen the price touch $1,522 this morning, its lowest level o...