Gold

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.

An ultra-bearish US hedge fund manager shorted gold a year ago, when it was still in favour with most investors, and thinks the price of the metal is on track for a multi-year drop.

Goldman Sachs has advised clients to stop shorting gold after the dramatic fall in the price of the precious metal over the last few weeks.

This week commodities dominated the headlines after a hefty sell-off in the gold market; while Schroders moved to replace outgoing manager Richard Buxton with a double hire.

Armstrong IM managing partner Patrick Armstrong has added a new gold derivatives position to his portfolios to capitalise on the precious metal's escalating price volatility.