'Buy oil, not gold' - Telegraph Trevor Greetham, portfolio manager of Fidelity's multi-asset funds, said gold did best when the dollar was weak and global growth was slowing. "A US-led global upswing could see neither condition hold true," he added. "The dollar has been strong in recent months as the likelihood of additional Fed QE [quantitative easing] has fallen," the manager said. Meanwhile, the sovereign debt crisis is hurting the euro and the likes of the Bank of Japan and the Swiss National Bank are implementing policies designed to weaken their currencies. The consultancy added: "The gold market has been showing increased sensitivity towards inflation fears during early 2012, as it has become ever more attentive to statements, or inferences from statements, of Federal Reserve Board Chairman [Ben] Bernanke. What could be seen as significant is that price falls in response to benign inflationary sentiment have been larger than any gains on heightened inflationary fears. Gold enjoyed a spectacular bull run until last summer, attracting investors worried that paper currencies would lose value as governments printed money in a bid to restart their stalled economies. The fear of economic meltdown during the depths of the eurozone debt crisis prompted many to seek gold as a safe haven, its traditional role in troubled times. But more recently the euro crisis has eased and signs of recovery have made further QE less likely. The gold price peaked at about $1,900 in August last year, but is currently at about $1,625, a fall of about 1.3pc compared with Tuesday. Shares in gold mining companies also fell sharply.