Gold manager cautions on spot price after 'phenomenal' decade

Ani Markova, co-manager of the Smith & Williamson Global Gold and Resources fund, has warned investors the gold may take some time to break out of its current trading range.

Markova expects the gold spot price will remain stubbornly range-bound  this year, at between $1,600 and $1,800 a troy ounce, until higher inflation starts to feed through into the global economy. "For the last year or so the gold price has been consolidating after twelve phenomenal years," she said. "The reality is it could take another cycle and period of consolidation before it breaks through the range, and the days of gold shares trading two or three times ahead of their net assets are over," she said. However, Markova is more positive on the outlook for gold and gold shares if...