Gold price ‘down 22% this year’

<p>Gold’s value has dropped by 22 per cent so far this year.</p>

Gold's reputation as the world's premier safe haven commodity could be in doubt.

The precious metal has lost 22 per cent of its value since the start of the year and is 33 per cent lower than its peak value, which was reached just over two years ago.

Gold is now trading at roughly $1,316 (£817) per ounce, with markets such as the Dow Jones performing so well that investors no longer see it as a safe bet for their money.

One of the issues the precious metal is now facing is that its value can be "volatile" in the short term, according to a report by FT Adviser.

Adrian Lowcock, senior investment manager at Hargreaves Lansdown, explained gold is typically a good bet long term, but this is not always the case for a shorter period of time.

Gold prices gained briefly last week on the back of stimulus comments made by incoming Federal Reserve chairman Janet Yellen, who revealed the current US monetary policy is expected to remain in place for some time yet.

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