Gold

The gold spot price hit a 33-month low today after positive US economic data strengthened the case for a tapering of quantitative easing, further eroding demand for safe havens.

Gold is likely to suffer from further sell-offs in the short to medium term as investors remain focused on an end to quantitative easing, Steve Russell, investment director at Ruffer, has said.

Nitesh Shah, research analyst at ETF Securities, says while the price of gold has dipped recently, other precious metals could provide investors with a good return as economic conditions improve.

Many UK-listed stocks have got off to a flying start in 2013, with indices approaching all-time highs, but some companies have been given a rough ride by markets, destroying shareholders' capital in the process.

Outflows from gold-backed exchange traded funds in 2013 are now greater than the combined level of inflows seen in 2011 and 2012, according to Bloomberg data.

The recent sell-off in gold and silver has led to fears precious metals may yet have further to fall, but some investors have backed them to provide a boost for portfolios later this year as they recover some lost ground.

The Ruffer Investment Company saw NAV hit a record high in April as soaring Japanese equities helped offset exposure to struggling gold miners.

First State Investments' Angus Tulloch and Jonathan Asante have both been adding to resources stocks in recent weeks across their GEM portfolios, following the sharp pullback in the gold spot price and the valuations of a number of miners.

The recent gold price volatility could plague investors for some time, and further selling is also a risk, according to BlackRock's natural resources head Evy Hambro.

Markets across the US closed up overnight as the more optimistic mood prevailed, while gold continued to recover from its recent savage fall.