Gold Price Decline Seen as Temporary by Hedge Fund Manager

Australian hedge fund manager Raphael Lamm believes the recent decline in gold prices is temporary. His A$1.5 billion ($1.1 billion) L1 Gold Fund has delivered a net return of over 235% to investors since its launch last year, thanks in part to a strong long-term rally in bullion.

Lamm attributes this rally to the unsustainability of fiscal situations in key markets, particularly US government debt exceeding $40 trillion. He also points to growing central-bank allocations as a supporting factor for gold prices over the medium to long term.

In the near term, Lamm predicts that gold prices will be driven by developments in the US-Iran war, real interest rates, and inflation data.