Gold has had one of its most dramatic starts to a year, soaring to record highs in January and crossing $5,500/ounce before falling to $4,000/ounce in late July. The precious metal came under pressure as renewed tensions over the Iran war pushed oil prices higher, raising expectations that the US Federal Reserve could hike interest rates this year.
Gold is now down roughly 7% year-to-date, but it continues to rank among the top-performing assets over the past year as other asset classes play catch-up. According to Jefferies’ Global Head of Equity Strategy Christopher Wood and billionaire hedge fund manager John Paulson, the recent pullback could offer investors an opportunity to gradually start accumulating gold. Both suggest that the precious metal may be at the beginning of a long-term bull run.
