Gold Price Decline Seen as Temporary by Lamm's Hedge Fund

Australian hedge fund manager Raphael Lamm believes the recent decline in gold prices is temporary. His fund, the 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.

Lamm co-manages the fund with Mark Landau and points out that the unsustainability of fiscal situations in key markets, particularly US government debt exceeding $40 trillion, will support gold prices in the medium to long term. He also highlights growing central-bank allocations as a factor.

According to Lamm, near-term price movements for gold will be influenced by developments in the US-Iran war, real interest rates, and inflation data.