Gold fever cools as UK investor sentiment slumps from post-pandemic highs - London Business News | Londonlovesbusiness.com

BullionVault's Gold Investor Index reveals a significant cooling in UK investor sentiment toward gold in April, with the index declining to 54.8 from 56.8 in March. This represents the largest monthly drop since January 2012, following a surge in demand at the start of the year that had reached its highest level since mid-2020. While the index remains above 50, indicating net buying continues, momentum has weakened considerably. First-time investors in physical precious metals halved from March, and profit-taking accelerated as gold prices retreated in sterling terms. Despite the decline, sentiment remains aligned with its five-year average, suggesting investors are still purchasing gold at lower prices, though without the intensity of the New Year rush.

"The fever in gold is finally cooling. While UK investor sentiment remains exactly in line with its long-term average, it's fallen at the fastest pace since the global financial crisis began to recede 14 years ago. The number of first-time investors in physical precious metals fell in half last month from March."

"The index slipped to 54.8 last month, down 6.2 points from March - its lowest level since July last year and broadly in line with its five-year average. A reading above 50 indicates net buying, meaning buyers still marginally outnumber sellers, but momentum has clearly cooled after a strong start to the year."

"At that time, gold ownership patterns shifted as investors rotated back into equities and property amid improving economic conditions. A similar rotation now appears to be taking place, albeit in a very different macroeconomic environment."

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