Gold drops to 25-month low

<p>Gold is at its lowest price in over two years.</p>

The price of gold continues to fall and has now dropped to its lowest point in more than two years, according to new data.

It was revealed by the latest Gold Investor Index from BullionVault that the amount of physical gold purchased by private investors fell sharply in May after a strong rise in April.

Adrian Ash, head of research at BullionVault, stated that the fall in the demand for gold was to be expected, reports Your Money.

"Retail investor sentiment towards gold remains positive – despite the uptick in both interest rates and the stock market – and a growing number of people are still adding gold to their savings," he said.

The Gold Investor Index is now at its lowest level since September 2012 and is down by 9.6 per cent from April's 16-month high.

It was recently noted by the World Gold Council Gold Demand Trends survey that demand for gold is on the rise among investors.

Find out about commodities trading and learn CFD strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.