Investors 'too optimistic' on gold amid Q2 headwinds

'Recovery or boom'

clock • 3 min read

Investors are "too optimistic" on gold with the commodity set to decline amid expected headwinds in the second quarter of 2019, according to research by Fidante Partners, while most asset classes are set for either a "recovery" or "boom".

In its quarterly Hype Cycle report, which analyses investment sentiment in financial markets via Google searches, ETF flows and the premium over the net asset value of relevant investment trusts, the firm found gold and catastrophe bonds to be the only asset classes to be showing a "negative momentum signal". Fidante said gold, which had been in boom territory in the first quarter hype cycle, has seen its price stall but investor interest has not, thereby creating "an overhyped situation". The firm said that while institutional investors have largely "shunned" gold in their portfolios...

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