'Losses could be significant': Experts debate the near-term future of gold

Low interest rates – like those we are witnessing in the UK, the US and Europe – are usually seen as encouraging investors to put money into non-interest-bearing assets like gold, in the hope its price will rise. Similarly, in times of financial uncertainty – as per the financial crisis – investors flocked to gold as a value holding safe port in the economic storm. But bullion has lost nearly 10% since Federal Reserve chairman Ben Bernanke said in June the US economy was recovering strongly enough to slow the pace of the $85bn of monthly bond purchases. Overall this year, gold has ...