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

"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."

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.

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