The head of asset allocation at Schroders Private Bank has cut back clients' exposure to gold amid fears the price has further to drop.
The FTSE 100 has dropped 2% as diminished expectations of more stimulus from the US Federal Reserve knock investor confidence.
Investors who have helped pushed gold prices up to record highs are now turning their backs on the precious metal, with figures this week showing heavy selling by gold ETFs.
Leading investors cast doubt on much-vaunted re-rating of lacklustre gold mining shares.
The price of gold fell more than 5% as investors became more confident about the health of the global economy following comments yesterday from Fed chairman Ben Bernanke.
Jenny Cosgrave talks to a trio of wealth managers about their outlook for the commodities sector and finds out which strategies stand out from the crowd
Demand for gold ETFs fell to a seven-year low in 2011 even as overall investment demand for gold hit a 14-year high, according to the World Gold Council.